Four Autonomous Communities already have a maximum rate of over 50%. It is the Valencian Community, where it reaches 54%; The Foral Community of Navarra, with 52%; La Rioja, with 51.5%; and the Canary Islands, with 50.5%, according to the 2023 Fiscal and Regional Outlook Report of the General Council of Economists (CGE).

Three other regions, Aragon, Asturias and Catalonia are at 50%while the lowest maximum aggregate rate, which results from the sum of the state marginal and the marginal applied by each autonomous region, is found in Galicia (47%), Castilla-La Mancha (47%), Castilla y León (46%) and the Community of Madrid (45%).

Likewise, the ‘4 biggest Spaniards’ have their marginal personal income tax rates among the highest in the European Union, whose average, like Spain, is 45%. For example, within the 27, only Denmark surpasses the Valencian region, with 55.9%, while, above Navarra, in addition to the Scandinavian country, only Greece appears (54%) Belgium (53.1%), Portugal ( 53%). and Sweden (52.2%).

La Rioja, in turn, would be below the previous ones and Finland (51.3%) and the Canary Islands would be behind France (51.5%) in the highest rate that the taxpayer pays if he earns more than a certain level income.

A total of thirteen countries have a marginally higher personal income tax than Spain (45%) and another 13 below, then our country would be exactly at the EU average. The EU states with the smallest marginals are Estonia (20%), Hungary (15%), Romania (10%) and Bulgaria (10%).

In any case, the report drawn up by the tax advisors (Reaf) of the CGE shows that in 2023, and also with effects for 2022, the trend of Spanish autonomies has been adopt measures aimed at mitigating the rise in pricesand that in previous years the trend was to regulate fiscal measures to mitigate the phenomenon of depopulation.

deflation rate

For this purpose, up to eight autonomous communities deflated or lowered the rate, some of them also in the personal and family minimums. These regions are Andalusia, Canary Islands, Castilla y León, Galicia, Madrid, Murcia Valencia and Aragón. In the IRPF, the autonomous communities regulate many deductionsIn general, with little collection cost because they tend to be established for taxpayers with very specific circumstances and, normally, with low incomes.

At the time, the autonomous communities transferred a total of 88 own taxes, of which 59 are in effect. Despite this, they represented only 2% of tax revenue in 2021, so they continue to be a scarce source of financing for autonomous companies. Own tax collection grew by 14.1% in the aforementioned period.

The analysis indicates that for this year there was numerous changes in the taxes themselves as a consequence of the creation of the state tax on waste, which meant that the autonomies that had implemented a similar tax abolished it or made it ineffective.

On the other hand, according to CGE’s tax advisors, tax revenues linked to the financing of autonomous communities, in general, have evolved positively after the financial crisis. “It’s been that way, especially in the partially transferred ones like personal income tax and VAT.”

And they add: “In the case of taxes assigned in full, in Wealth Taxes and Inheritance and Donation Taxes, revenue remains relatively stable year over yearand it can already be seen that the collection of Property Transfer Tax and Documented Legal Acts is increasing, although it is still far from what was collected before the 2008 crisis”.