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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.

Who qualifies, and how is “new resident” defined?

You must not have been tax-resident in Spain over the last 5 years and establish tax residency in Madrid from 1 January 2024.

Which investments qualify for the deduction?

Securities—stocks, bonds, etc.—mustn’t be real estate or linked to tax-haven entities.

When must I make the investments?

In the year you become a tax resident in Madrid or the following year. For Spanish securities, an investment in the year prior may also qualify.

What if I don’t have full IRPF liability in year one?

Any unused deduction carries forward up to five years to offset future tax liability.

What happens if I leave Madrid before six years?

The deduction is revocable with repayment plus interest—unless proceeds are reinvested within one month into eligible assets.

Can this be combined with the Beckham Regime?

No—these regimes are mutually exclusive. We’ll model both scenarios to identify which yields greater benefit.

How can Charfort assist with the IRPF filing?

We prepare your annual Form 100, calculate the deduction, ensure appropriate documentation, and manage carry-forward tracking.

Does Charfort support long-term compliance monitoring?

Absolutely—we monitor ongoing eligibility, support reinvestment strategies, and liaise with AEAT on any audit or regulatory questions.

Contact us today

Charfort assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.

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