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ECONOMY

Confirmed: Hacienda acknowledges that in this part of Spain you'll pay fewer taxes

Many will be able to take advantage of these tax deductions from the Community of Madrid if they meet some simple requirements

by

Miguel Cuartas Ortego

Did you know that if you move to certain towns in the Community of Madrid, you could save on your taxes? Hacienda offers significant deductions to encourage those under 35 to establish their residence in municipalities with fewer than 2,500 inhabitants. We'll tell you how it works and what requirements you must meet.

Tax deductions for young people: Hacienda gives you a nod if you live here

The Community of Madrid has implemented measures to combat depopulation in 73 of its municipalities. If you are under 35 and live in one of these towns, you can benefit from a deduction of up to 1,000 euros in the regional IRPF quota. This deduction applies whether you buy a home or choose to rent.

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Additionally, if you purchase or renovate a home in these municipalities and use it as your primary residence, you could deduct 10% of the purchase price or the cost of renovation work, with an annual limit of 1,500 euros. This provides an additional incentive for those looking to settle permanently in these localities.

Requirements to benefit fiscally

The Community of Madrid also considers bonuses in the Property Transfer Tax for the purchase of second-hand homes and in the Documented Legal Acts Tax for new homes.

These bonuses aim to facilitate access to housing in rural areas and promote repopulation. To access these deductions and bonuses, you must meet the following requirements:

  • Age: Be under 35 at the time of establishing your residence in the chosen municipality.
  • Residence: Maintain your residence in the municipality for at least four years: the year of the move and the three following years.
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  • Primary residence: The home must be your primary residence, whether owned or rented.
  • Municipality: The municipality must have a population of fewer than 2,500 inhabitants and be included in the list of localities at risk of depopulation in the Community of Madrid.

73 municipalities included

The Community of Madrid has 73 municipalities with fewer than 2,500 inhabitants that are considered at risk of depopulation. Some of them are La Hiruela, Madarcos, Puebla de la Sierra, Robregordo, or Somosierra.

This initiative seeks to revitalize these localities and offer opportunities to young people looking for a better quality of life outside the big cities. If you are under 35 and are thinking of moving, consider these municipalities in the Community of Madrid. Not only will you enjoy a quieter and more natural environment, but you will also be able to benefit from significant tax advantages.

➡️ Economy

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