Proposed New Deduction in the Preliminary Draft of the Community of Madrid

A new investment deduction for new foreign taxpayers in personal income tax is proposed, with the aim of encouraging the arrival of investors and promoting employment and business growth. 

The Anteproyecto de Ley proposes to amend the Texto Refundido de las Disposiciones Legales de la Comunidad de Madrid en materia de tributos cedidos por el Estado. The amendment seeks to establish a new deduction for investments for new taxpayers from abroad in the personal income tax. 

The explanatory memorandum highlights the fiscal policy of the Community of Madrid which has proven to generate economic development and attract investment, compatible with budgetary stability and the quality of public services. 

The new deduction aims to encourage the arrival of new investors, promoting the generation of employment and business growth. A modification is also introduced in the deduction for the acquisition of a primary residence due to the birth or adoption of children in order to adapt the regularisation procedure in the event of non-compliance with the requirements;

The law complies with the principles of good regulation, necessity, effectiveness, proportionality, legal certainty, transparency, efficiency, budgetary stability and financial sustainability. The regulation comes into force on the day following its publication in the Official Gazette of the Community of Madrid and will apply from 1 January 2024.