The president of the Community of Madrid, Isabel Díaz Ayuso, will announce new tax cuts on inheritance and gift taxes and for rental accommodation“which will generate savings of nearly 180 million per year for the region’s taxpayers.”
He will put it forward during his speech in the debate on the state of the region, which is being held this Thursday in the Assembly of Madrid. Inheritance and gift taxes will be increased from next year 50% bonus for transactions between siblings and between uncles and nephews by inbreeding, which is currently 25%.
Thus, as stated by the regional government, the Community of Madrid will be “the first region to introduce this measure in both types of taxes for this degree of kinship.”
100% sporadic donations
In addition, a bonus of 100% in case of sporadic donations between individuals that are less than 1,000 euros. The formal requirement to issue a public document to apply existing ones will also be removed.
The Madrid government estimates that these new tax cuts will save around 130 million euros per year and will benefit around 13,000 Madrid residents.
Tax assistance for rent
In terms of housing, the scope of a deduction linked to personal income tax (IRPF) has been broadened this year. Thus, the maximum age to be able to apply the planned deduction will be raised. to the rental of habitual residence up to 1,234 euros, increase from 35 to 40 years. Nearly 45,000 taxpayers will benefit from this, who would be added to the 65,000 who currently benefit from it, generating a tax break of 50 million euros per year.
This measure announced in the area of housing is added to the bill on tax reductions in this area, currently being examined in the Parliament of Madrid. It provides for four deductions from personal income tax for owners who rent out unused homes, to mitigate the increase in variable-income mortgages due to the rise in interest rates and to combat the depopulation of children under 3 years of age. 30 years old who establish their habitual residence in municipalities with fewer than 2,500 inhabitantswhether for purchase or rental.
To this they can add an additional tax bonus of 100%. transfers of ownership (ITP) in the case of acquisition of second-hand housing, and Documented Legal Acts (AJD), in the case of new housing. The total impact of the savings resulting from all these tax reductions provided for in the bill amounts to 118 million euros.
