With this allowance, “people coming from abroad and investing in Madrid in financial or real estate assets” will be able to “deduct 20% of their investment from (the regional part of) their income tax”, explained to the press. Javier Fernandez-Lasquetty, head of economic policy for the regional government.
“We believe that Madrid can attract savings, investment” thanks to this measure, he defended, saying he was “concerned” about the impact on investment of the new tax on large fortunes created by the central government of socialist Pedro Sanchez.
Figure of the Popular Party (right), the president of the region of Madrid, Isabel Diaz Ayuso, had said last week that this tax deduction was intended to “send to the international community of investors a clear message: there is in Spain institutional counterweights and an alternative to this central government.
The announcement of this measure, which must still be approved by the regional parliament, comes in a pre-election context four months from the regional elections at the end of May and less than a year from the legislative elections, where the PP is given the lead. in the polls.
In Spain, a very decentralized country where the regions have broad powers, particularly in tax matters, several right-wing regions were accused in the autumn of creating “tax havens” by lowering the share of income tax or heritage belonging to them.
Cantor of the fight against taxes, Isabel Diaz Ayuso had already abolished in 2021 about fifteen local taxes in her region.
The central government’s “solidarity tax on large fortunes” will affect people with wealth of more than three million euros, or 0.2% of the population, and is expected to bring in 1.5 billion euros in 2023 and 2024.
It is intended to finance the record social expenditure planned under the last budget.