The beginning of the ‘It was Mbapp’ at Real Madrid and, with it, a leap in quality for the team led by Carlo Ancelotti, who will bring together the French footballer with Vinicius, Bellingham and company. The arrival of the Bondy player to the capital also brings with it changes in the fiscal policy of the Community of Madrid.
The main novelty is none other than the popularly known as the Mbapp law’. This is a measure of the autonomous government of Isabel Díaz Ayuso that allows deduct 20% in the autonomous section of the Personal Income Tax (IRPF) to new taxpayers who establish their residence in the Madrid regionAs an essential requirement, those who wish to benefit from this tax relief must invest in the Community.
In the case of IRPF, in Spain there are two types of sections. One, state-wide, applicable to the entire national territory, which is 24.5% for those taxpayers with annual incomes of more than 300,000 euros. Another, regional, which varies depending on each autonomous community. In the case of Madrid, this is 20.5%. In total, a high-income earner in Madrid must pay 45% of his or her income.
One aspect that needs to be changed completely. That 20.5% tax reliefprovided that the requirements for being eligible for it are met, will mean the almost complete elimination of the autonomous section. Regarding this law, it should be noted that come into force in a few months after the Governing Council of the Community of Madrid sent the preliminary draft to the Assembly last June.
Requirements to be covered by the law
The law does not apply to people who already live in the Community, but to foreign investors. These are the requirements to benefit from this law.
- Having lived outside of Spain for the five years prior to changing residence to the territory of the Community of Madrid.
- Do not invest in companies incorporated or domiciled in tax havens.
- Do not invest in housing.
- Do not invest in companies with more than 40% family participation.
- Investments must be made in the year in which tax residency is acquired, or in the following year.
- Taxpayers must maintain their residence in Madrid for at least six years.
One requirement that is especially important above all others is the minimum stay required to benefit from the law. Taxpayers They must maintain their tax residency for a minimum of six years.. The loss of residency before that period of time will inevitably result in the loss of the applied deduction.
A law that goes beyond athletes
Known as such in reference to the French footballer, in reality the regional government was already thinking about this law long before Mbapp’s signing for the white team was forged. Its objective is to attract the interest of taxpayers with high purchasing power. In fact, goes far beyond footballers and other elite athletesso it is unknown whether they will be able to take advantage of it.
The PP of Madrid already tried to approve it last year, but Vox voted against, which is why it was left on the tableHowever, the absolute majority obtained in the regional elections of May 28 has helped the Díaz Ayuso government to continue with the pending work.
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