The president of the Community of Madrid, Isabel Díaz Ayuso, announced that in 2024 a new personal income tax deduction will come into force for anyone who has not resided in Spain in the last five years and wants to invest and move to the region. , becoming a new taxpayer. In that case, 20% of the total investment made in financial assets may be deducted from the regional tax rate, as long as it is maintained for the next six years.

This was announced by Díaz Ayuso in New York during the informative breakfast on October 16 organized by Spain-Us Chamber of Commerce and Invest in Madrid under the title “Madrid, leader in attracting foreign investments”. There she detailed the Community’s economic model based on low taxation “that does not punish companies” and an Administration that is “friendly and effective, with as little bureaucracy as possible.”

As the president has pointed out, the investment will be for both financial and real estate assets. “That they stay and live among us is what we want, that new families come to Madrid to settle here and come with their children to continue contributing to this Spain,” she explained. With this new measure, no maximum or minimum limit is established, that is, this incentive will be applicable from the first euro invested.

The only annual limit will be the personal income tax rate on which the 20% deduction is applied, that is, if it is enough to offset the entire deduction, it can be done in the first year. If it is not, it will be distributed over the next five.

In this way, a returning Madrid resident or foreigner who invests 1 million euros may deduct 20% of the total (200,000 euros) if their personal income tax quota for that year is equal to or greater. Otherwise, what cannot be applied that year will be distributed over the following five years.

This is a tax measure designed to facilitate the arrival of foreign capital and new taxpayers and, also, to favor companies that are already located in the Community of Madrid and that are seeking funds to expand their businesses.

In the coming weeks, the Madrid Executive will begin the procedure to carry it out, such as publishing the draft law in a public hearing before being able to submit it to the Government Council. Once this approves it, it will be sent to the Assembly for parliamentary processing and final approval.