Shock at Hacienda After the Announcement in This City in Spain: You Save a Fortune

This Monday, February 17, the Community of Madrid surprised Hacienda with a new tax measure that will benefit thousands of Madrid residents. The regional president, Isabel Díaz Ayuso, announced a significant increase in the reduction of the Inheritance and Gift Tax. She is doing so by raising the discount from 25% to 50% for transactions between siblings and between uncles and nephews by consanguinity.

Madrid Further Reduces the Inheritance and Gift Tax: Rises to 50%

This initiative makes Madrid the first autonomous community to apply this measure in both modalities of the tax for this degree of kinship. The Inheritance and Gift Tax levies the transfer of goods and rights by inheritance, legacy, or donation.

With this new discount, Madrid residents will be able to save a considerable amount of money when inheriting or receiving goods from close relatives. Two siblings who inherit a house valued at 200,000 euros (approximately 218,000 USD) and savings of 100,000 euros (approximately 109,000 USD) will be able to avoid paying more than 15,600 euros (approximately 17,000 USD) each on the non-discounted quota. This represents significant savings.

Other Measures Announced by President Isabel Díaz Ayuso

In addition to the reduction in the Inheritance and Gift Tax, Ayuso presented other tax measures for 2025. Above all, two of them have not left anyone indifferent and have been widely applauded.

The maximum age to qualify for the deduction in the IRPF for renting a primary residence will be extended from 35 to 40 years. This measure will benefit about 45,000 additional taxpayers, generating a tax relief of 50 million euros (approximately 54 million USD) annually.

A 100% discount will be established on these taxes for the acquisition of second-hand and new-build housing, respectively. The total impact of the savings from all these tax cuts is estimated at 118 million euros (approximately 129 million USD).

Benefits for Many: So Declares the President of the Community of Madrid

Isabel Díaz Ayuso highlighted that these measures consolidate her government's fiscal policy. Ayuso considers the Inheritance and Gift Tax as "unfair and outdated." She also emphasized that these fiscal policies make Madrid more attractive and competitive without affecting the rest of Spain.

These initiatives aim to alleviate the tax burden on Madrid residents and promote the region's competitiveness. Overall, they benefit thousands of taxpayers and strengthen the local economy.