Destination Guide: Madrid (Community of Madrid)

Relocating to Madrid:
Regional Beckham Tax Guide

Compare regional progressive IRPF rates (45.0%) against the flat 24% Beckham Law and protect your assets in Madrid.

Madrid Regional Fiscal Parameters

Max Regional IRPF Rate45.0%
Regional Wealth Tax Bonification100% Bonified
Regional Wealth Allowance100% Regional Exemption
Municipal Property Tax (IBI)Municipal IBI property tax rate: 0.456%

1. Regional Tax Scale Analysis for Madrid (Community of Madrid)

Personal income tax in Spain is divided into a 50% state tranche and a 50% regional tranche set by the autonomous community (Community of Madrid). Standard tax residents in Madrid face progressive IRPF rates that scale up to a maximum marginal rate of 45.0%.

By opting into the Beckham Law (Modelo 149), expats establishing residence in Madrid replace this progressive regional scale with a flat 24% rate on active Spanish employment income up to €600,000.

2. Wealth Tax Bonification (100%) & Foreign Asset Immunity

For standard taxpayers, Community of Madrid enforces a regional Wealth Tax bonification rate of 100%. 100% Bonified (0% Wealth Tax liability for all assets) However, Beckham Law taxpayers in Madrid enjoy statutory non-resident status, giving them 100% IMMUNITY from Spanish Wealth Tax (Impuesto sobre el Patrimonio) on all assets held outside Spain.

Generate Your Custom Madrid Fiscal Blueprint

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