Spain:
Community Of Madrid Fiscal Measures For 2018
18 June 2018
Andersen Tax & Legal
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On 29 May 2018, the Governing Council of the Community of Madrid
approved the draft law on tax measures for the Community of Madrid
for 2018
The draft contains important measures relating to Personal
Income Tax, Inheritance and Gift Tax, and Transfer Tax and Stamp
Duty, which are summarized below:
1. Personal income tax:
Deduction for birth (entered into force
1/1/2018)
|
- 600€ per year, for 3 years, for children born or adopted
from 1/1/2018 onwards. Taxpayer's income limit: 30,000€ in
individual taxation or 36,200€ together, not exceeding
60.000€ per family unit.
|
Deduction for housing rental (effective
1/1/2018)
|
- People under 30 years of age may apply a 30% deduction on
amounts used to rent their home, subject to a limit of €1,000.
Also, those who are not older than 40 years, provided they have
been unemployed for more than 6 months and have two dependents. The
income received may not exceed 25,620€ in individual taxation
and 36,200€ in total, and without exceeding the family unit of
60,000€.
|
Decrease in the regional scale of personal income tax
(entry into force 31/12/2018)
|
- Reduction of the minimum rate to 9%, applicable to the taxable
base not exceeding €12,450.
|
Deduction for foster care (effective
31/12/2018)
|
- Deduction of 1,500€ for the care of people over 65 who are
not related or disabled. Must be living together more than half of
the year (more than 183 days) without compensation, and the
disability must be greater than or equal to 33%. The taxpayer's
income may not exceed €25,620 in individual taxation and
€36,200 jointly, with no limit on the family unit
|
Deduction for school fees (entry into force
31/12/2018)
|
- 15% deduction for descendants from 0 to 3 years old, with a
maximum deduction limit per descendant of €1,000 per year. The
taxpayer's tax base may not exceed the amount of €30,000
multiplied by the number of members of the family unit.
|
Contribution deduction for a carer of descendants under
3 years of age (effective 31/12/2018)
|
- Deduction of 20% of the cost of social security contributions
per carer hired for descendants up to 3 years of age, with a
maximum of €400 per year per family.
- Large families: 30% deduction with a maximum of 500 euros per
year. Requirements: (i) at least one of the descendants cannot be
enrolled in a publicly supported nursery school (public place or
childcare check beneficiary), (ii) the head of the household must
have been registered as an employer and have had one or more
caregivers hired and contributing for at least 40 hours per month,
and (iii) the parent or parents must have worked each of them for
at least 183 days during the year in which the deduction applies.
Income limit of 30,000 euros per capita.
|
Deduction for contributions to the share capital of the
social economy (effective 31/12/2018)
|
- 50% deduction, with a maximum of €12,000 per year, for
contributions to the share capital of cooperatives and worker-owned
companies.
|
Deduction for donations to Foundations (effective
31/12/2018)
|
- Deduction of 15% of the amounts donated to foundations
registered in the Registry of Foundations of the Community of
Madrid. The basis of the deduction may not exceed 10% of the
taxable amount
|
Deduction for investment in the acquisition of shares
and holdings (effective 31/12/2018)
|
- Deduction of 30% of the investment in shares and equity in
newly created companies, but not exceeding €6,000 per year. In
the case of entities in which universities or research centres have
a stake, the deduction may be up to 50%, but may not exceed
€12,000 per year.
|
2. Inheritance and gift tax (Effective 1/1/2019)
- A new bonus is established for both inter vivos and mortis
causa acquisitions for transfers between 2nd and 3rd degree
consanguineous collateral (siblings, uncles and nephews) of 15% and
10% respectively.
- Limit of application: When the taxable person himself requests
or applies it when submitting his self-assessment or return.
3. Transfer tax and stamp duty (Entry into force 1/1/2019)
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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