The absence of Vox from the political equation of the Madrid regional government has allowed its president, Isabel Díaz Ayuso, since last May 28, to recover all the initiatives blocked in the Chamber of Vallecas and today she has announced that in 2024 a new personal income tax deduction intended for any person who has not resided in Spain in the last five years and wants to invest by becoming a new taxpayer.
This measure will allow beneficiaries to deduct 20% of the total investment made in financial assets in the regional tax quota, as long as it is maintained for the next six years. The regional Executive has illustrated the measure graphically: if that person from another country buys a home for 300,000 euros in the region, the regional administration will return up to 60,000 euros over six years. If the property costs half a million, the bonus could reach 100,000 euros. And so on.
Ayuso tried to approve it at the beginning of the year, but the refusal of his then parliamentary partner prevented him from doing so. Rocío Monasterio pointed out that Vox would only support these deductions as long as Madrid residents had "the same advantages."
In the same way, the PSOE was opposed at the time - claiming that the measure "not only does it not benefit anyone in Madrid who already has problems accessing the housing market, but it harms them compared to those millionaires who buy the house." housing" - and Más Madrid who, in addition, understands that inequality can be generated compared to the rest of the citizens, which is why it will study its possible unconstitutionality.
This was announced by the head of the Madrid Executive in New York during the informative breakfast she hosted this Monday organized by Spain-Us Chamber of Commerce and Invest in Madrid under the title 'Madrid, leader in attracting foreign investments'.
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, where the PP has an absolute majority, for parliamentary processing and final approval. The last legislature Vox overturned the initiative, in what was one of the biggest disagreements between the Ayuso Government and this formation.
Ayuso has defended the Community's economic model based on low taxation "that does not punish companies" and a "friendly and effective Administration, 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," he 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.
