The Community of Madrid has recently announced significant imminent changes to its Inheritance and Gift Tax policies, aiming to alleviate the tax burden on families and promote economic activity.
As of early 2025, the region has announced it will increase the tax relief for inheritances and gifts between siblings, as well as between uncles/aunts and nephews/nieces, from 25% to 50% .
The regional government estimates that approximately 14,000 residents will benefit from this measure, resulting in an annual savings of nearly 130 million euros .
In addition to the increased relief for siblings and other relatives, Madrid has introduced a 100% tax exemption 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 . Furthermore, the requirement to present a public document (escritura ) to apply existing discounts on donations up to 10,000 euros has been eliminated, simplifying administrative procedures and reducing costs.
These initiatives reflect Madrid’s ongoing commitment to reducing taxes and fostering a favorable economic environment.
Since 2021, the region has implemented multiple tax reductions, reinforcing its position as a leader in fiscal policy innovation within Spain .
