
Spain
Mbappé Tax Regime
Overview
The “Mbappé Law” (Law 4/2024, published 28 November 2024) introduces a 20% deduction on the regional portion of IRPF for new Madrid tax residents making qualifying financial investments.
Effective 1 January 2024, it is designed to attract high-net-worth individuals and international investors to the Madrid region.

Benefits
- 20% deduction on the Madrid part of Spanish Personal Income Tax (“IRPF”) based on the acquisition cost of eligible financial assets.
- Investment may be foreign or domestic, no need to be held in Spain.
- Non-real estate only: excludes property and assets in tax havens.
- Maximum 40% ownership, including family holding, and no executive roles in the investee company.
- Investments must be held for at least six years.
- Excess deduction can be carried forward up to five years if annual IRPF liability is insufficient.
- Interregional wealth tax and inheritance allowances in Madrid further enhance net benefits.
Requirements and Procedures
- New tax residency in Madrid from 1 Jan 2024, with no Spanish tax residency in the previous 5 years.
- Investments made during the year of arrival or the following year; for Spanish securities, also permissible one year prior.
- Investments must be in eligible financial assets (stocks, bonds, etc.).
- Maintain investments and Madrid tax residency for at least six years; any premature exit triggers repayment with interest, unless fully reinvested within 1 month.
- Claim the deduction in the annual IRPF tax return (Form 100).
- Incompatible with Beckham Regime or other regional investment deductions; must opt between them.


How Charfort can help you?
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Frequently asked questions
Everything you need to know about the process.
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Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.
