The Provincial Council of Bizkaia has introduced a bold tax reform designed to attract top-tier executives to the territory. These measures aim to boost competitiveness by offering significant incentives that will be maintained for up to seven years for professionals relocating to the province.
For instance, a 52-year-old executive, originally from Bilbao and currently residing in London, who is considering a return to lead an electric sector company, could see an annual tax saving of up to 7,485 euros. This calculation is based on a salary of 100,000 euros and three children. The aid will be partially maintained in the first year and fully for seven subsequent years.
The reform increases the general exemption on employment income from 30% to 50%, and to 60% for those under 36 years old. Tax sources caution that these figures are simulations and do not account for other income or housing expenses.
The program is not exclusively for top executives but also targets skilled professionals such as welders, industrial design technicians, or electricians, provided they hold at least a higher vocational training degree or a university degree.
For example, a 38-year-old industrial design technical engineer, with an offer of 50,000 euros at a metalworking company in Basauri, could benefit from a tax saving of 3,000 euros. Similarly, a 33-year-old automotive vocational training graduate returning to Durango with a salary of 40,000 euros would receive an incentive of 2,956 euros.
The proposal also aims to retain local talent by improving the tax treatment of company stock options offered as bonuses, providing fiscal advantages for stock valued up to 12,000 euros.
Another significant novelty is the deduction for private health insurance expenses. Individuals will be able to deduct 20% of their expenses, with a maximum base of 1,500 euros, resulting in a tax reduction of up to 300 euros annually, a long-standing demand in the Basque Country.
