Isabel Díaz Ayuso, president of the Community of Madrid, will announce this Thursday new tax cuts in the Inheritance and gift tax and for the rental of housing. Specifically, the inheritance and gift tax will be increased from next year to 50%, the premium for transactions between brothers and sisters and between uncles and nephews by consanguinity, which is currently 25%.
This is aid “which will generate savings of almost 180 million per year to the taxpayers of the region. However, this is a foretaste, since this information will be known during Ayuso’s intervention in the debate on the state of the region, which is being held this Thursday, September 12, at the Assembly of Madrid.
Ayuso will apply a 100% bonus
With this measure, as stated by the regional government, the Community of Madrid of Ayuso will be “the first region “which introduces this measure into the two types of taxes for this degree of kinship.”
Another measure is that a 100% bonus in the case of sporadic donations between individuals of less than 1,000 euros. The formal requirement to issue a public document to apply existing ones will also be removed.
The Madrid Executive estimates that these new tax cuts on this tax will result in savings of almost 130 million euros annually and will benefit around 13,000 Madrid residents.
Help with renting accommodation
As for housing, the scope of a deduction linked to personal income tax has been expanded since this year (Income tax). Thus, the maximum age to be able to request the rental of a habitual residence will be raised to 1,234 euros, going from 35 to 40 years.
With this measure, they will benefit from approximately 45,000 taxpayerswhich would be added to the 65,000 who currently benefit from it, generating a tax break of 50 million euros per year.
This announced housing aid is in addition to the bill on tax reductions in this area which is currently being examined in the Parliament of Madrid.
It also includes four deductions in the Income tax intended for owners who rent out disused housing, to mitigate the increase in variable-income mortgages due to the rise in interest rates and to combat the depopulation of young people under 30 who establish their habitual residence in municipalities with fewer than 2,500 inhabitants, whether for purchase or rental.
To this can be added a 100% extra bonus in real estate transfer taxes (ITP) in the case of the acquisition of second-hand housing, and in documented legal acts (AJD), in the case of new housing. The total impact of the savings resulting from all these tax reductions in the bill is 118 million euros.
