On November 15, the Madrid Assembly officially approved a new deduction for investments by new taxpayers coming from abroad, known as the \u201cMbapp\u00e9 Law.\u201d The goal of this measure is to attract significant international investors to the Community of Madrid. This new deduction is retroactively effective from January 1, 2024, meaning international investors who have established their residence in the Community of Madrid during this tax year and meet the requirements can benefit from the measure in their 2024 Personal Income Tax (IRPF) return (to be filed in 2025).<\/p>\n
Essentially, the law allows for a 20% deduction<\/strong> on investments made in financial products (such as bonds, shares, investment funds, and other investment instruments) from the regional portion of the IRPF.<\/p>\n Investments can be made either within the Community of Madrid or in other global territories, except in jurisdictions classified as tax havens.<\/p>\n To benefit from this deduction, taxpayers must meet the following conditions:<\/p>\n As a general rule, the investment must be made either during the tax year in which the individual becomes a taxpayer in the IRPF system in the Community of Madrid or in the following tax year.<\/p>\n Failure to meet any of these requirements will result in the loss of the tax benefits obtained.<\/p>\n It is important to note that this deduction does not apply to taxpayers opting to file taxes under the so-called Special Expat Regime (Beckham Law)<\/strong>. Under this regime, regional deductions on the tax base are not permitted.<\/p>\n Investors are encouraged to contact the International Taxation Department at Feliu N&I<\/strong> for a prior study and analysis of the global tax impact of these investments. While the deduction applies to IRPF, it is also necessary to assess its implications for the Wealth Tax<\/strong> and the Temporary Solidarity Tax on Large Fortunes<\/strong>.<\/p>\n www.feliu.biz<\/a>\u00a0\u2502\u00a0www.expatfeliu.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" On November 15, the Madrid Assembly officially approved a new deduction for investments by new taxpayers coming from abroad, known as the \u201cMbapp\u00e9 Law.\u201d The goal of this measure is to attract significant international investors to the Community of Madrid. This new deduction is retroactively effective from January 1, 2024, meaning international investors who have […]<\/p>\n","protected":false},"author":2,"featured_media":7868,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-7867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/posts\/7867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/comments?post=7867"}],"version-history":[{"count":1,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/posts\/7867\/revisions"}],"predecessor-version":[{"id":7870,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/posts\/7867\/revisions\/7870"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/media\/7868"}],"wp:attachment":[{"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/media?parent=7867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/categories?post=7867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.feliu.biz\/en\/wp-json\/wp\/v2\/tags?post=7867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Conditions for Investments<\/h3>\n
Requirements for Eligibility<\/h3>\n
\n
Timing of Investment<\/h3>\n
Penalties for Non-Compliance<\/h3>\n
Ineligibility Under the Special Tax Regime for Expats<\/h3>\n
Expert Advice Recommendation<\/h3>\n