The government's proposed 2027 State Budget forecasts a favorable increase in local government tax revenue, specifically driven by continued activity in the real estate market. This revenue growth is largely tied to the collection of IMI (municipal property tax) and IMT (municipal property transfer tax).
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The 2027 State Budget proposal allocates 3.855 billion euros to higher education, science, and innovation, a 7.6% decrease compared to 2026 estimates. The budget includes 125 million euros for social action and student welfare, with full implementation of the new scholarship regulation scheduled for the 2027/2028 academic year.
The 2027 State Budget proposal introduces a subsidy of 0.062 euros per liter for colored diesel used by small-scale farmers, family farms, aquaculture operators, and small-scale artisanal and coastal fishing businesses with annual consumption up to 2,000 liters. Family farmers receive an additional 0.042 euros per liter, and subsidies are also extended to gasoline and LPG usage for specific small-scale fishing, farming, and sea salt extraction activities.
The 2027 State Budget proposal removes the 2.5% solidarity tax for taxpayers earning between 80,000 and 89,995 euros. For those earning above 89,995 euros, the 2.5% rate will now apply to income between 89,995 and 250,000 euros, while income exceeding 250,000 euros will be subject to a 5% rate.