Valencia’s regional parliament has passed a sweeping law that restricts access to social benefits and public housing while introducing new tax breaks for the wealthiest residents. The Ley de Acompañamiento won approval on Friday with the combined votes of the Partido Popular (PP) and Vox, who together hold a majority in Les Corts. The law writes the controversial 'prioridad nacional' principle into Valencian legislation, giving Spanish nationals and long-term residents preference for public assistance.
Under the new rules, only people with at least five years of registered residence in any Spanish municipality will qualify for public housing and most social aid. People in irregular administrative situations will be excluded from structural social services, except in cases of urgent need as defined by law. Applicants must also show an extended period of residency and contribution to the system, including work history and tax payments. Separately, the reform of the Renta Valenciana de Inclusión, which began applying in October 2026, sets two alternative registration tests for the regional benefit: three consecutive years in a Valencian municipality immediately before applying, or ten years, continuous or interrupted, during the previous 30 years. Applicants must also be registered in a Valencian municipality when they apply.
The Renta Valenciana de Inclusión reform also introduces an Acuerdo de Inclusión, which can require active job-seeking through Labora or participation in training; it also covers children’s school attendance, including the non-compulsory 0-3 stage. Subject to statutory conditions, recipients may combine the benefit with employment income for 12 months. Reported maximum monthly benefit levels range from €793.80 for a one-person household to €1,247.40 for households of six or more. These are benefit amounts, separate from the tax measures in the legislative package. The PP and Vox majority in Les Corts Valencianes approved the reform after agreeing on the Generalitat’s 2026 budget and related legislation.
Alongside the restrictions, the PP and Vox have approved impressive tax changes. The law cuts the IRPF (personal income tax) retroactively from 2026, with an additional 0.15% reduction for those earning over €100,000 a year. By 2027, the total reduction for this income bracket will reach 0.25%. The threshold for paying the Impuesto de Patrimonio (wealth tax) has also risen from €1 million to €2 million. So, about 4,200 Valencians will pay the tax, compared with nearly 28,000 before the PP and Vox coalition took office. A separate regional statute, Ley 5/2026 on fiscal, administrative and organizational measures, took effect on 11 August 2026 and covers changes to the autonomous IRPF scale and tax-rate legislation, as well as inheritance and gift taxation.
The PP accepted most of Vox’s proposals but rejected a further cut to the budget of the Acadèmia Valenciana de la Llengua, which the far-right party has openly targeted for elimination. Les Corts rejected amendments from opposition parties, including PSPV-PSOE and Compromís. The opposition accused the government of adopting exclusionary and discriminatory policies, and the debate grew heated. Critics say the tax cuts disproportionately benefit high earners, while the new residency requirements will make it harder for vulnerable groups to get support. Social organizations cited by Cadena SER and Público have called the residence-linked policy “institutional racism,” arguing that people who face barriers to registering at a municipal address may be especially affected.
The law also bans burkas and niqabs in public spaces, including on transport and in healthcare centers. Officials must enforce the rule, with local police overseeing compliance. The measure is framed as a security and identification issue, but rights groups and opposition politicians have criticized it.
This legislative package completes approval of the Generalitat’s third budget under the PP and its first under President Juanfran Pérez Llorca. The government says the changes will simplify bureaucracy and direct €350 million to housing, while ensuring tax relief reaches middle- and lower-income residents. Opposition parties, but, argue that the reforms primarily serve the privileged and weaken social cohesion.
Spain is implementing the 'prioridad nacional' principle at this scale for the first time. The Ley de Acompañamiento is an annual legislative catch-all that lets the government introduce many measures alongside the basic budget law. The tax and social policy changes reflect a broader trend in some Spanish regions toward stricter residency requirements and targeted fiscal relief. The debate in Valencia highlights ongoing disputes over migration and public spending, including how public resources are distributed.
