New tax incentives for the transfer of tax residence to the Territory of the Madrid Region

These incentives relate to:

• A Tax Relief amounting to 20% of the value invested in debt and shares in companies’ resident in any part of the World (only excluding certain Tax Haven).
• High tax benefits for young people (under 35 years) willing to move to the Community of Madrid.

Individuals not resident in Spain who become tax resident in the Madrid Region as of 2024, could apply a regional deduction of 20% of the acquisition value of the following financial assets in companies, regardless of the territory or country in which those companies are domiciled (with few limitations only in case of companies from tax havens territories) and without it being necessary for them to be traded or quoted on an organised market.

It should be noted that, as this is a deduction applicable exclusively to those paying Personal Income Tax, hence it might not be compatible with the Spanish Inpatriate Tax Scheme known colloquially as the “Beckham Law”.

Remember:

• In order to acquire the tax residency in the Madrid Region in 2024, the tax residency change should be executed before July the 1st.
• Investments eligible for deduction must be made in the year of change of residence and may be in companies resident in any country, tax havens are excluded only in few cases.

Access to the full informative note