Investor Presentaiton
A flexible tax regime that drives competition and dynamism
The Community of Madrid's policy on regional taxes aims at a flexible tax regime that favors the creation of
companies and economic dynamism.
Comunidad of Madrid
PIT
Wealth tax
Tax rate
Only taxed over
Tax rate
Tax rate
Inheritance tax
Bonuses
Inheritance and Gift tax
Gift tax
WTT
Wealth Transfer Tax and
Stamp Duty
SD
Tax rate
Bonuses
Tax rate
Tax rate
18.5-43.5%
700,000 €
Discount of 100%
7.65-34%
Groups I y II: 99%;
Group III: 10-15%
7.65-34%
Groups I y II: 99%;
Group III: 10-15%
6%
0.75%
*Maximum deductible amount
Source: Community of Madrid.
Catalonia
Andalusia
21.5-48%
500,000 €
0.21-2.75%
19.5-48%
700,000 €
7-32%
0.24-3.03%
7.65-36.50%
Groups I y II: 99%-20%
Groups I y II: 5-9%
Groups y ll: 1.000.000€*;
Group III y IV disabled
people: 250.000€*
7.65-36.50%
Castile and Leon
19-44%
700,000 € *Note: It should be noted that
0.2-2.5%
the tax rates and deductions
7.65-34%
shown in the following table are
Groups I y II: 100-
of general application. However,
80%
the tax regulation establishes
other deductions with a more
residual application.
7.65-34%
10-11%
1.50%
Features:
8-9-10%
1.50%
8-10%
1.50%
Tax actions 2022 / 2023:
1) Tax incentive to attract new foreign investors (new as of January
2023).
2) A half-point reduction in all regional personal income tax
brackets.
3) Abolition of all taxes levied by the Community of Madrid.
4) Deflation of personal income tax.
5) Law on tax deductions to promote births, support for families and
access to housing.
6) Allowance for inheritances between siblings, aunts, uncles and
nephews of 25%.
Setting up a 20% deduction in personal tax
liability on the investment made ( no minimum
investment and is applicable to all types of
assets).
Minimum tax deduction of 6 years.
Objectives:
Boost savings and investment.
Encourage new companies to set up, while
helping those already operating to grow.
Bolster Madrid's position as a benchmark for
international investment to counteract the
negative effects of the creation of the New Tax on
Large Fortunes.
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