Overview
- The central government sent the detailed draft to autonomous communities on Friday, July 10, with calculations showing total regional funding near €224.5bn and an additional €20.975bn estimated for 2027.
- Key technical changes increase ceded revenue shares to 55% of IRPF and 56.5% of IVA and add levies such as inheritance and transfer taxes, certain transport taxes, gambling levies, electricity, wealth, bank deposits and landfill fees to the financing basket.
- The proposal allows regions to opt to receive the 56.5% IVA generated by small and medium enterprises based on firms’ tax domicile through a voluntary adhesion window of five years.
- A technical committee will review the draft in the coming days and the Consejo de Política Fiscal y Financiera is scheduled to vote on July 29, where backing from the Generalitat is expected to be enough to pass the model despite a coordinated boycott by PP-led regions.
- The draft reuses a refined population‑adjusted formula that the government says will cut per‑capita funding gaps by nearly half, would raise Catalonia’s resources by about €4.686bn and would speed up cash advances and introduce a pre‑liquidation mechanism to give regions greater budget predictability.