Ayuso presents an ambitious tax reduction plan to relieve the people of Madrid.

The President of the Community of Madrid, Isabel Díaz Ayuso, presented an ambitious tax reduction plan yesterday, set to be implemented in 2025, aimed at easing the tax burden on Madrid residents and facilitating access to housing in a context of increasing economic difficulty. In her speech, Ayuso emphasized that these new measures add to the thirty tax reductions that her government has enacted since the beginning of her term, which are expected to generate savings of 170 million euros for citizens. The announcement comes at a time when the Madrid economy shows signs of recovery, but significant challenges remain, such as rising interest rates and inflationary pressure. The president stressed that her government has fulfilled 93% of its commitments, reflecting a consistent dedication to the growth and economic stability of the region. One of the standout measures is a 50% reduction in inheritance and donation taxes for transactions between siblings and between uncles and nephews. This initiative aims to promote the transfer of wealth within families, which could benefit many Madrid families and is estimated to generate savings of 130 million euros. Additionally, deductions will be introduced for small landlords renting out vacant homes, with the goal of encouraging leasing and reducing pressure on the rental market. This deduction will allow landlords to save up to one thousand euros on their tax returns, benefiting around 20,000 property owners and seeking to increase the supply of affordable housing. The community also plans a deduction to mitigate the impact of variable mortgage loans, which has been exacerbated by the rise of the Euribor. This measure, which will have a limit of 300 euros, is intended to relieve 450,000 mortgagors, with a total estimated saving of 90 million euros. On another note, the expansion of the deduction for renting a primary residence, which raises the maximum age to benefit from it from 35 to 40 years, will allow more young people to access this tax relief. The government estimates that this measure will benefit an additional 45,000 individuals, generating another 50 million euros in annual relief. Aware of the depopulation affecting rural municipalities, the new deductions will also include incentives for young people who choose to move to these areas. In addition to a one-thousand-euro deduction for establishing residency, a 10% deduction on the purchase price of a home will be offered, aiming to revitalize these regions. Among the highlighted measures is a 100% reduction in Property Transfer and Documented Legal Acts taxes for the acquisition of both new and second-hand homes. This strategy is aimed at facilitating home purchases and is expected to generate savings of nearly seven million euros. The plan also includes the elimination of formal requirements for occasional donations of less than one thousand euros, which will facilitate assistance between individuals. This simplification is designed to encourage solidarity and mutual support among citizens. Finally, the reduction in personal income tax (IRPF) to attract investments from new foreign taxpayers is presented as a key strategy to boost the Madrid economy, offering a 20% incentive on certain investments, provided that beneficiaries maintain their tax residence in the region for at least six years. In summary, the tax reduction package proposed by the Madrid government represents a significant effort by the regional administration to alleviate the economic burden on its citizens, promote the development of the housing market, and attract investments. However, the effectiveness of these measures will depend on their implementation and the economic context prevailing at the time of their entry into force.