New Income Tax deduction for investments in the Madrid Region: 20% of the investment will be deductible

New personal income tax deduction for new investments coming from a foreign country to the Region of Madrid. The regional government has announced an ambitious measure, a pioneer in Europe, which will allow all people, nationals and foreigners, who make an investment in the Community of Madrid after having lived outside Spain for more than 5 years, to deduct 20% of the investment through a reduction in the regional income tax bracket.

The measure will apply to any type of investment, be it real estate, financial or business. In the case of financial assets, it will not be necessary for them to be located in Madrid Region, something that will be required for real estate assets.

There is no limit to the amount of tax relief; in other words, it will be applied from the first euro invested. As for the ceiling, it will be the IRPF quota itself on which the 20% deduction is applied; in other words, if it is sufficient to compensate for the entire deduction, it can be made in the first year of the investment. If not, it will be spread over six years, the minimum time the investment must be maintained in the Community of Madrid.

The measure will be implemented following the amendment of the Consolidated Text of the legal provisions of the Region of Madrid on taxes ceded by the State, approved by Legislative Decree 1/2012 of 21 October. Following its validation by the Regional Government Council and its subsequent parliamentary processing, this measure is expected to enter into force this year.

According to estimates, this new measure will have a major impact on the regional economy, since for every billion-euro invested, it is expected to contribute €886 million to the regional GDP, as well as generating 13,000 new jobs.

Spain Investors Day to address Madrid’s strength within the Spanish economy

This morning saw the start of the 13th edition of Spain Investors Day, the main economic and financial event in Spain, which for two days brings together the country’s main listed companies with numerous international investors, as well as various state and regional authorities and market regulatory and supervisory bodies.

Madrid Region will be present at this forum through an informative breakfast organised by its agency for attracting foreign investment, Invest In Madrid. This will be a round table with the participation of executives from some of the region’s most important multinationals, as well as the Regional Minister of Economy, Finance and Employment of Madrid Region, Javier Fernández-Lasquetty. All of them will address the economic weight of Madrid within the Spanish economy, as well as the keys that make this region the main focus for receiving foreign direct investment, as revealed by the figures year after year. In the first three quarters of 2022, the Region of Madrid received almost 65% of all foreign investment entering Spain, a figure that reached 73% in 2021.

The round table will be attended by the General Manager of ERICSSON in Spain, Andrés Vicente, the representative of MITSUBISHI for Spain, Hiroyuki Kitahara, the General Manager of AMERICAN EXPRESS, Juan Ortí, the Director of Institutional Relations of CEMEX, Antonio Cases and the Director himself. The debate will be moderated by the President of Madrid Open City, Gerardo Seeliger. The President of the Community of Madrid, Isabel Díaz Ayuso, will open the event.

Spain Investors Day has kicked off with the presence of various personalities such as the Vice-Presidents and Ministers of Economic Affairs and Ecological Transition, Nadia Calviño and Teresa Ribera, respectively; the Minister of Industry, Trade and Tourism, Reyes Maroto; as well as 47 major Spanish listed companies.

Invest In Madrid’s participation in this meeting reinforces the leading role played by the Region of Madrid as a driving force in attracting foreign investment, especially at this time of economic uncertainty, when companies are seeking financial stability and legal certainty when deciding on their investment destinations. The Region of Madrid will be the first and only Autonomous Region to be present at an edition of Spain Investors Day.

Invest In Madrid to participate in Spain Investors Day

Invest In Madrid will participate in the 13th edition of Spain Investors Day, the main meeting between investors and entrepreneurs in Spain. This new edition will be held in Madrid on 11 and 12 January, and will aim to discuss the economic outlook for 2023, as well as to promote investment in a scenario marked by the war in Ukraine and its global consequences. The Community of Madrid will be present through Invest In Madrid, the regional office for the attraction of foreign investment, at a time of absolute leadership. More than 73% of the foreign investment received in Spain in 2021 came from the Region of Madrid.

The Spain Investors Day will be attended by international investors, heads of national listed companies, as well as representatives of the central and regional governments and market regulatory and supervisory bodies. Attendees will analyse the challenges and opportunities offered by the market and Spanish companies, at a time when prudence prevails, awaiting the evolution of the war that has had a decisive impact on the global economy and has caused a strong shock in the geopolitical scenario.

The SID Governing Council, whose honorary president is King Felipe VI, will be chaired by the CEO of Estudio de Comunicación, Benito Berceruelo. In his opinion, in the current economic situation “it is crucial to expose our strengths as a country and convey a message of calm to all those international investors who own more than 50% of the companies listed on the Spanish stock exchange”. Berceruelo also highlighted the opportunity provided by this meeting to offer a broad portrait of the country’s economic reality.

Invest In Madrid’s collaboration in this meeting reinforces the leading role played by the Region of Madrid as a driving force in attracting foreign investment, especially at the current time of economic uncertainty, when companies are looking for financial stability and legal certainty when deciding on their investment destinations. The Region of Madrid will be the first and only Autonomous Region to be present at an edition of Spain Investors Day.

International Trade Consultant, strategic allies for Madrid’s companies

Invest in Madrid received this week the students selected for the second edition of the new Foreign Trade Technicians Programme, jointly run by the Madrid Chamber of Commerce, Industry and Services and the Ministry of Economy, Finance and Employment of the Madrid Regional Government.

A total of 20 young people have passed this tough training programme, and will be the beneficiaries of the one-year scholarship granted by the Community of Madrid to work as Foreign Trade Technicians in strategic countries for the commercial relations of the Community of Madrid. Some of these destinations are #Istanbul, #Washington, New York, #Lisbon, #Milan, #Bombay, Bogotá or Mexico City, among other cities.

The Foreign Trade Technicians Programme is an extremely important programme for companies in Madrid as it allows them to find, in their #internationalisation process, an essential ally in the country of destination that will help them to open up to new markets, identify opportunities and minimise risks in their establishment in a new country.

Invest In Madrid collaborated in the training programme for these trade technicians, with a talk on the importance of Foreign Direct Investment for the regional and national economy, as well as the role played by investment attraction agencies such as Invest In Madrid in attracting such investment and contributing to the creation of wellbeing and wealth.

At today’s event, we had the opportunity, together with the Ventanilla Unica de Internacionalizacion Madrid-VUI, to share with these talented young people the desire to experience the extraordinary opportunity they have been given. The event concluded with a tasting of Wines of Madrid, thanks to which they were able to learn about the Designation of Origin wines of our region.

Madrid, second European region in attracting talent and qualified employment

These data correspond to the Digital Talent Map of Madrid Region drawn up by the social network LinkedIn, which provides information on both the amount of training of people working or looking for work in the region and the interest of qualified professionals in seeking new challenges.

The Regional Minister of Economy, Finance and Employment, Javier Fernández-Lasquetty, participated today in the presentation of this analysis at IE University, which confirms Madrid’s leadership as a pole of attraction for investment and innovation. In this regard, he stressed that “the regional government’s economic policy and its low taxation allow for the creation of a favourable framework for entrepreneurship and the development of new ideas, which generates an increasingly professionalised and specialised labour market”.

The skills that are growing the most, according to this study, correspond to those most in demand, such as those related to digital transformation or project management. This makes Madrid more competitive compared to other capitals in the old continent, such as Amsterdam or Lisbon.

Fernández-Lasquetty insisted on the importance for the regional government of having more and more talent, “as it is an essential element in the development of a more vibrant and modern economy”, and highlighted the commitment to Madrid of companies, start-ups and professionals who want to start up or improve their situation.

New training plans designed for companies

Fernández-Lasquetty also referred to two innovative programmes designed by the Madrid Government so that companies can train their workers or people looking for a job in the most in-demand skills.

Thus, a line of aid has been created (known as Upskilling and Reskilling), endowed with 19.4 million euros and focused on retraining and improving skills, which will benefit more than 60 companies that have submitted a training project linked to sectors such as new technologies, automated machine tools and robotics, aeronautical equipment or modern rail transport, among other strategic sectors.

In addition, work is being carried out on a Digital Talent Plan, in collaboration with technology manufacturers, to provide the specialised training required by companies in the sector.