They Disconcert Hacienda After the Announcement From This Region of Spain: Many Celebrate It

The Community of Madrid has left Hacienda unsettled with its recent tax reduction measure. The regional president, Isabel Díaz Ayuso, has announced a significant reduction in the Inheritance and Gift Tax, which will benefit many Madrilenians.

Hacienda Surprised After the Announcement of This Tax Reduction in Madrid

The main novelty is the expansion of the discount in the Inheritance and Gift Tax. Starting this year, transactions between siblings, as well as between uncles and nephews by blood, will have a 50% discount.

This represents an increase from the previous 25%. With this, Madrid becomes the first region in Spain to apply such a discount for this degree of kinship in both modalities of the tax.

Additionally, a 100% discount has been established for occasional donations between individuals that are less than 1,000 euros. This means that for small donations, taxpayers will be exempt from paying taxes. The requirement to present a public document to apply existing discounts on donations up to 10,000 euros has also been eliminated, simplifying administrative procedures.

Objectives of the Tax Measure on the Inheritance and Gift Tax

The main objective of this tax reduction is to alleviate the tax burden on Madrilenian families, especially in delicate moments like inheritances and donations. President Ayuso has described this tax as "unfair and anachronistic."

She also highlighted that many countries in the European Union have already eliminated it. With this initiative, the aim is to encourage savings, protect private property, and prevent families from being economically suffocated when receiving an inheritance.

Ayuso's Statements After Announcing the Tax Reduction

During her intervention in the Debate on the State of the Region, Isabel Díaz Ayuso defended the fiscal autonomy of the Community of Madrid. She called for respect for the decisions made in tax matters and denied that these measures constitute "tax dumping." According to Ayuso, the region uses its regulatory capacity, enshrined in the Constitution, to define its tax policy and be more competitive.

The president also emphasized that these tax reductions will benefit approximately 14,000 Madrilenians and represent a savings of nearly 130 million euros annually. This savings will allow families to have more resources and will contribute to boosting the regional economy.

The announcement of this measure has taken Hacienda by surprise, as it did not expect a tax reduction of such magnitude in an autonomous community. This could generate debates about tax harmonization between the different regions of Spain and the role of the autonomies in tax management.