Andalusians saved 64.4 million euros last year on the Personal Income Tax (IRPF 2023) thanks to the deductions approved by the Government of the Junta de Andalucía. This amount represents an increase of 277.1% compared to 2018, which translates to 47.3 million euros more saved by Andalusians just in deductions.
According to the provisional data from the State Tax Administration Agency on the results of the last income tax campaign, the impact of deductions on the IRPF 2024 in Andalusia (campaign 2023) resulted in an 11.3% increase compared to the previous campaign. Also, the number of people who could benefit from these Andalusian deductions in the IRPF in the last campaign increased significantly, reaching 393,117 beneficiaries, 189.5% more than in 2018 (257,321 more taxpayers).
Among the deductions with the greatest impact were those related to educational expenses (151,783), for disability of the taxpayer (98,843) or another person (42,761), for large families (38,496) or for renting a primary residence (31,989).
In terms of the savings for Andalusian taxpayers, the most impactful deductions were those that are part of the housing tax package, whether for renting or buying a primary residence (18.8 million). In addition to these, deductions for disability (18.5 million) and for educational expenses (13.9 million) also contributed significantly.
From 2018 to 2023, four new deductions were implemented or improved (and one temporary one only valid in 2020, for amounts donated to fight Covid-19) that Andalusian taxpayers can still apply today: for the birth or adoption of children, for large families, for educational expenses, and for ecological donations. In 2023, 214,927 IRPF declarants benefited from these new deductions.
Social nature of deductions
The increase in benefits from deductions did not result in a decrease in revenue, according to data from the AEAT, as the Autonomous Liquid Tax (CLA), which is the part of revenue received by the Junta de Andalucía, amounted to 7,543.7 million euros in 2023, which is 657.1 million euros more than in 2022 (a 9.5% increase) and 2,515.3 million euros more than in 2018 (a 50% increase).
The key to the revenue increase lies in the rise in the number of declarations submitted, as well as in the taxable base of Andalusian declarants. However, the impact of deductions, most of which are limited to taxable bases of up to 25,000 euros (or 30,000 in joint taxation), is mainly focused on declarations from taxpayers with medium and low incomes and vulnerable groups.
Right to deductions
The Minister of Economy, Finance, and European Funds, Carolina España, has emphasized the «social nature» of the tax policy of the Andalusian Government, noting that «high incomes pay more and low incomes benefit more.»
She pointed out that the tax cuts approved in recent years are not an end in themselves but are part of the «fiscal revolution» launched by the Government of Juanma Moreno, through which taxes have been reduced six times for Andalusians, aiming to boost the economy, attract new taxpayers, increase economic activity and consumption, and thus generate wealth and create jobs, the minister concluded.
Carolina España also highlighted the need for citizens to declare their personal circumstances when filing their tax returns in order to benefit from deductions, which cover everything from renting or buying a home, hiring domestic help, teaching languages and new technologies, to contributions to environmental protection and the fight against climate change. There are also deductions for cohabitants with disabilities, childbirth, or for being a large family.
«Fiscal measures only have an effect if applied correctly,» the minister explained. «That’s why it’s important to remind citizens that they can take advantage of the tax benefits they are entitled to, and not miss out on them due to forgetting when filing their tax returns.»
Most of the deductions depend on personal circumstances. Therefore, it is the taxpayer who must declare the circumstances that make them eligible for these deductions when submitting their IRPF declaration.
The complete list of regional deductions can be found at the following link: