If there is a hallmark of the economic policy of the Government of Isabel Díaz Ayuso, it is the low tax pressure, which will follow a downward line in 2025. In fact, in the ninth year, Madrid residents will benefit from nine new tax reductions aimed at promote access to housing and attract foreign investment. These measures, which, according to the calculations of the Community of Madrid, represent a saving of 170 million euros for taxpayers, will be detailed today by the regional president, Isabel Díaz Ayuso, after the last Government Council of the year. The region thus reinforces its position as the autonomous community with the lowest tax pressure and the only one without its own taxes.
Of the new tax measures that are being launched, seven are focused on the real estate market, including rental incentives, bonuses for those affected by the works on line 7B in San Fernando de Henares and specific deductions in personal income tax for new foreign taxpayers. Among the most notable discounts are those affecting small owners who rent empty homes for at least three years, which may be deducted up to 1,000 euros, with an expected impact of 20 million euros for the benefit of 20,000 people.
On the other hand, a deduction of up to 300 euros will be introduced to cushion the impact of variable mortgage loans, aimed at families with per capita incomes of less than 30,930 euros and whose primary residence does not exceed 390,000 euros. This measure will reach 450,000 mortgage holders with a saving of 90 million.
In addition, the maximum age for deducting the rental of a habitual residence is extended from 35 to 40 years, a measure that will benefit 45,000 new taxpayers and will add an annual tax relief of 50 million euros.
In rural areas, those under 35 years of age who move their habitual residence to municipalities with less than 2,500 inhabitants may deduct up to 1,000 euros for the purchase or rental of a home, in addition to 10% of the purchase price for ten years, with a limit of 1,546 euros annually. Likewise, a 100% bonus will be applied to Asset Transfers and Documented Legal Acts.
On the other hand, those affected by the works on line 7B will receive full tax credits for the acquisition of new or second-hand homes that replace damaged ones, with an estimated saving of seven million. The Madrid Executive also seeks to attract new resident investors through a 20% reduction in personal income tax for those who invest in assets such as bonds, shares or limited companies. The measure will require maintaining investment and tax residence in the region for at least six years. Since the beginning of Díaz Ayuso’s mandate, the Community has approved 30 tax reductions, to which the reductions in Inheritance and Donations will be added in 2025. The latter will include 50% bonuses on transactions between siblings and between uncles and nephews, and 100% for sporadic donations of less than 1,000 euros. With an expected impact of 130 million euros annually, these measures will benefit 13,000 Madrid residents, consolidating Madrid as a tax reference in Spain.
Protection of young people
On the other hand, the Community of Madrid plans to approve new regulations in 2025 aimed at protecting young people against the consumption of products derived from marijuana. The new Draft Law, on which the Madrid Government has been working for months, will reform the current Drug Addiction regulations in force since 2002. After passing the public hearing and allegations phase, it is expected to be approved by the regional Executive in the first quarter of 2025, to then begin its processing in the Madrid Assembly.
The reform seeks to protect minors from the sale of products such as vaping oils, snacks or gummies with CBD and other cannabinoids, the consumption of which can entail significant health risks. The regulations will prohibit its sale to minors in any type of establishment, vending machines or digital platforms. In addition, its advertising will be restricted, establishing a radius of 300 meters around non-university educational centers where it will be banned. Their sponsorship will also be limited, avoiding associating these products with physical performance or health benefits. This legislation will be aligned with the regional Law on Rights, Guarantees and Comprehensive Protection of Children and Adolescents of 2023, which prohibits the sale of harmful substances to minors. Likewise, visible information on the composition and use of products aimed at this audience will be required.
The Government of Isabel Díaz Ayuso thus ends the year with 93% of the measures in its government program completed or in progress.
►Another new feature for 2025 will arrive in September, with the start of the school year. Many public schools will teach 1st and 2nd ESO courses. At the moment, at least 25 Early Childhood and Primary Education centers (CEIP), distributed throughout the region, have officially requested to be part of this project. This measure will allow students who finish 6th grade of Primary to continue their compulsory secondary studies without changing schools. These centers have already approved the implementation of the new courses in their respective school boards and have the necessary conditions to adapt their facilities. The Ministry of Education, Science and Universities is scheduling the necessary works to guarantee that the infrastructure is ready on time.