The Government of the Community of Madrid will undertake several tax deductions to Madrid taxpayers in 2024, which will save 126 million euros in the next Income Tax return, according to calculations by the Executive.
The Madrid president, Isabel Díaz Ayuso, will take stock this Wednesday at the last meeting of the Government Council of the year, in which she won the absolute majority after the regional and municipal elections on May 28.
In 2024, the deflation of the Personal Income Tax (IRPF) will be applied again for the second consecutive year, with which Madrid taxpayers will see the tax effects attenuated, in the event that their salaries have increased as a result of the inflation.
Furthermore, within the Strategy for the Protection of Maternity and Paternity and the Promotion of Birth and Conciliation of the regional Executive, the Madrid Government has created an incentive for new large families, who will have a 50% discount on the autonomous personal income tax quota, and in the event that they are in a special category, it will reach 100%. On the contrary, this measure is not contemplated for single-parent families because they are still not recognized in the Community of Madrid.
Furthermore, in terms of aid for access to housing, a deduction is established for purchases linked to a birth or adoption, which will have a reduction of 10% of the purchase price, prorated over ten years, with an annual limit of 700 euros. .
Likewise, those under 30 years of age, and until reaching that age, may deduct 25% of the interest paid during the year for mortgage loans obtained for the acquisition of their primary home, with a limit of 1,000 euros per year.
This next year, the tax relief related to the care of elderly people in the family environment may also be applied, with a deduction of 500 euros for the care at home of ascendants over 65 years of age or with disabilities; for the rental of housing to deduct 10% of expenses for conservation or repairs; and the deduction of 100% of the interest of those who request a loan for higher education.
On the other hand, the Madrid Executive will approve in 2024 a new personal income tax deduction for new taxpayers who have been living outside of Spain for at least 5 years and invest in financial or real estate assets, as long as it is for a primary residence.
In these cases, 20% of the contribution made may be deducted as long as it is maintained for six years.
With its comfortable absolute majority, Ayuso will be able to carry out its star measure, which was vetoed by Vox in the last legislature for wanting to benefit foreigners over Madrid residents.
With this new tax measure, Ayuso wants to attract investment and boost Madrid's economy to generate more wealth and employment.
