Ayuso presents a tax plan with nine cuts to boost the Madrid economy.

The President of the Community of Madrid, Isabel Díaz Ayuso, has presented an ambitious plan that includes nine new tax cuts set to take effect in 2025, with a special focus on housing. According to estimates from the regional government, these measures will result in a total savings of 170 million euros for Madrid residents. During her speech, Ayuso emphasized that these reductions add to the thirty already implemented during her tenure, thereby reinforcing her commitment to a fiscal policy aimed at alleviating the burden on taxpayers. One of the most significant aspects of this package of measures is the 50% exemption on the Inheritance and Donations tax among siblings and between aunts/uncles and nephews/nieces by blood. This measure, which currently stands at 25%, is estimated to generate savings of 130 million euros. The goal, according to the president, is to facilitate the transfer of assets within the family unit, which could have a significant impact on the estate planning of many Madrid families. Another proposed tax cut is a deduction of one thousand euros for renting out vacant homes. This deduction will particularly benefit small property owners who sign contracts for at least three years, with a projected reach of around 20,000 beneficiaries, generating an estimated savings of 20 million euros. This measure aligns with the regional government’s goal of promoting rental housing and making the real estate market more accessible. Additionally, a deduction has been proposed to mitigate the impact of rising interest rates on mortgage loans. Homeowners who meet certain requirements will be able to benefit from a deduction limit of 300 euros, which would affect approximately 450,000 mortgaged homeowners in the Community of Madrid, with an estimated total reduction of 90 million euros. This measure comes at a crucial time, given the increase in interest rates in recent years, which has caused concern among homeowners. The expansion of the deduction for renting a primary residence, which raises the maximum age limit from 35 to 40 years to qualify, has also been one of the new proposals. It is expected that around 45,000 additional taxpayers will join the current 65,000, generating an additional tax relief of 50 million euros per year. This measure aims to encourage rental housing among young people, a demographic that often faces difficulties in accessing housing in Madrid. A particular focus has been given to depopulation in rural municipalities with fewer than 2,500 inhabitants. The new deductions aim to incentivize young people under 35 to establish their residence in these towns, offering up to one thousand euros in deductions, regardless of whether they buy or rent a home. Additionally, it will allow a deduction of 10% of the purchase price, with an annual limit of 1,546 euros, for ten fiscal years. These initiatives are estimated to benefit approximately 1,200 citizens. The regional government has also proposed 100% exemptions on the Property Transfer Tax and Documented Legal Acts tax for the purchase of both second-hand and new homes, respectively. These measures are expected to generate savings close to seven million euros for Madrid residents, which could stimulate the real estate market in the region. In the case of sporadic donations between individuals, a 100% exemption is planned for those that do not exceed one thousand euros. This measure also includes the elimination of the formal public documentation requirement for registering such donations, which could facilitate solidarity among individuals and generate a positive impact on family and community relationships. Finally, a reduction in personal income tax (IRPF) aimed at attracting investments from new foreign taxpayers has also been announced. This 20% reduction will apply to a series of financial contributions, but with specific conditions intended to ensure that new residents contribute to the sustained economic development of the Community of Madrid. The measure is directed at those who have not resided in Spain during the five years prior to the change, which may complicate access to this deduction but potentially strengthen the local economy. In summary, the tax measures announced by Ayuso are part of an ambitious plan to invigorate the economy and facilitate access to housing in Madrid. With a focus on tax reduction and support for vulnerable sectors, the regional government hopes not only to ease the tax burden on citizens but also to incentivize investment and development in the community. However, the real impact of these measures will depend on their implementation and the response of taxpayers in the coming years.