Madrid is set to introduce significant tax reductions in 2025, reinforcing its position as Spain's region with the lowest tax burden.

The measures aim to ease access to housing and attract foreign investment, offering a total savings of €170 million for residents.

Key initiatives include a €1,000 deduction for renting out vacant homes and up to €300 for families with variable-rate mortgages.

Younger residents moving to rural areas will benefit from tax breaks, including a 10% deduction on home purchases.

Foreign investors will enjoy a 20% income tax deduction for investments maintained for six years.

These policies are expected to benefit thousands of residents and solidify Madrid's reputation as a fiscal haven.