For individuals making €25,000 annually, the lack of inflationary increases amounts to an additional tax liability of €207. High earners with a salary of €350,000 per annum might have saved as much as €1,500 had the tax bands been adjusted appropriately.

The report also warns that in the absence of tax deflation, people could find themselves pushed into higher tax brackets simply because of nominal rises in income caused by inflation. This so-called “bracket creep” imposes a higher tax rate on income despite the fact that real purchasing power for the income has not increased.

Some Spanish regions grant tax benefits to homeowners who let out vacant homes. In Galicia, the amount is €500, in Extremadura €1,200, in Madrid and the Canary Islands €1,000, and the Basque Country and Navarre are also at the same level.