The acting president of the Community of Madrid, Isabel Díaz Ayuso, will announce this Wednesday during her inauguration speech a new and substantial tax reduction for families and businesses that are more than 50 years old. The measure will affect figures such as the Property Transfer Tax (ITP) and Documentary Legal Acts (AJD), managed by the autonomy itself, and others such as the real estate tax (IBI), the capital gains tax or the economic activities tax ( IAE), of a municipal nature. For all these reasons, while one part of the plan depends exclusively on the regional Executive itself, the other will have to be agreed upon with the municipalities of the territory.

In the business field, Díaz Ayuso will launch the program Businesses with tradition, focused on the 1,500 commercial and hotel establishments with more than 50 years of experience “because it is a sign of regional identity”, explains the Madrid Executive. The plan provides for a new bonus of up to 95% for the taxes that these companies bear, both municipal and regional.

In the first case, the reduction of the IBI, the IAE and the ICIO (Constructions, Installations and Works) will be agreed with the municipalities, as well as the fees they pay for their activities. Within the regional framework, the 95% bonus will affect ITP and AJD, two figures that are applied, for example, when buying real estate.

In parallel, and designed for all taxpayers, Díaz Ayuso will request the city councils of the region to apply a reduction in the tax on the Increase in the Value of Urban Land, the one known as capital gains tax that is applied when the value of the real estate asset has increased between the time of purchase and the time of transfer.

The request will be transferred “immediately” from the regional Executive to the 179 municipalities of the region to reduce this tax of a local nature that is levied on the revaluation of urban land such as homes and premises, and which is faced by all taxpayers who carry out a transfer of property, whether by purchase, gift, or inheritance.

The tax is calculated using coefficients determined by the State each year. For their part, the consistories are the ones that establish the maximum values ​​and on which bonuses can be established.

The regional government still does not have estimates of the collection impact of any of these measures, but they assure that the entry into force of this reduction will favor savings for thousands of families, boosting both consumption and investment.

The reduction in the capital gains tax, specifically, “will mean significant savings for individuals, the self-employed and companies, since they will see a reduction in the payment of taxes on the transfer of real estate.” The measure “will especially benefit” Madrid families, whose assets, as in the rest of Spain, are concentrated above all in property ownership.

Outside the tax area, the plan for the 1,500 businesses over 50 years old will also include other edges focused on “eliminating any type of regulation that hinders the work of these professionals.” For this reason, the regional government will promote the elimination of planning licenses for “all hotel and restaurant businesses”, replacing them with a responsible declaration, as has already happened in businesses for 10 years.

Finally, the most traditional businesses will also have priority in granting aid for their modernization and innovation, as will happen in the next call for subsidies for commercial SMEs from the Ministry of Economy, Finance and Employment. In this same one, they remember from the Díaz Ayuso team, they will have specific aid for the conservation and rehabilitation of premises subject to protection for being historical heritage.

Madrid is the region that champions the tax reductions that are later replicated by various autonomies governed by the Popular Party. The central community was the first to subsidize 100% wealth tax, a measure that Andalusia and the new Government have subsequently announced that PP and Vox have closed for the Valencian Community. Ayuso also promoted last year the extension to 25% of the inheritance and gift tax bonus between brothers, uncles and nephews and the first deflation of personal income tax to combat the effects of inflation. Before the elections on May 28, the Madrid president advanced that she would once again lower the income tax rate by half a point in the regional section. Madrid, in turn, is the only community in Spain that today does not have any of its own taxes.

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