The Assembly of Madrid has presented a Bill to temporarily modify the Wealth Tax (IP) exemption in the Madrid region during the period of validity of the Solidarity Tax on Large Fortunes.
Currently, the Madrid region has a 100% exemption on the Wealth Tax quota, which exempts Madrid taxpayers from paying this tax. However, since 2022, those taxpayers with assets of more than 3 million euros are affected by the entry into force of the Temporary Solidarity Tax on Large Fortunes (ITSGF).
For this reason, the Bill aims to temporarily modify the Wealth Tax exemption while the ITSGF is in force. The Assembly has proposed the introduction of a variable exemption, so that Madrid taxpayers affected by this new tax will pay it as part of the Wealth Tax, while those not affected will continue without paying the tax.
In practice, the abolition of the exemption will mean that the wealth tax will be collected by the Community of Madrid and not by the State Tax Administration Agency (AEAT).
