The Madrid autonomous community — by far the most popular destination for Beckham Law impatriates — has confirmed that several regional deductions applicable to impatriate taxpayers will be extended through the 2025 and 2026 tax years. The decision, published in the autonomous community official gazette in late February 2026, ends a year of uncertainty for taxpayers who had been planning around a possible sunset.
None of the regional deductions affect the headline 24% national rate — that remains identical across all autonomous communities. What they do affect is the smaller-but-not-trivial regional component of the tax (the tramo autonómico), and a handful of specific situations where the national framework allows regional intervention.
Key takeaways
- Madrid confirms the extension of the impatriate-specific regional deductions through tax years 2025 and 2026.
- The headline 24% / 47% national rates are unaffected — regional deductions apply only to specific sub-categories.
- Catalonia and Valencia have no comparable impatriate-specific deductions; the Basque Country and Navarre operate separate fiscal regimes.
- The extension does not change the substantive eligibility for the Beckham regime.
The Madrid context
Madrid has been the largest single destination for Beckham Law applicants since the Startups Law extension in 2022. By the end of 2024, roughly 38% of all active impatriate filings in Spain were domiciled in the Madrid autonomous community — a function of the concentration of multinational HQs, well-paid technology employers, and a regional tax policy that has historically leaned competitive.
The autonomous community regional deductions are not new to 2026: most have been on the books since 2017–2019. What was uncertain was whether the regional government would renew them in the 2026 budget. The confirmation closes that uncertainty.
Which deductions are extended
The deductions affect three distinct categories:
- Investment in newly-incorporated Madrid-domiciled companies. Impatriates who invest in qualifying Madrid-resident startups during their first three years under the regime can deduct 30% of the investment, up to a regional ceiling of €6,000 per year.
- Donations to Madrid-registered cultural and educational entities. A 15% regional deduction applies to qualifying donations, on top of the national framework.
- Acquisition of habitual residence by impatriates under 35. A 10% deduction on mortgage interest paid, capped at €1,200 per year, for impatriates who purchase their first Spanish habitual residence within the first two years of arrival.
What it actually saves
For a typical Beckham filer earning €120,000, the deductions are meaningful but not transformative. The mortgage-interest deduction alone caps at €1,200 per year — useful, but a small fraction of the €12,000+ that the underlying Beckham regime already saves each year versus standard IRPF.
The investment deduction is the most consequential of the three for high earners: an impatriate making the full €20,000 investment in a Madrid startup recovers €6,000 of tax in the year of investment, on top of the national-level startup-investment deduction.
Regional deductions are the icing, not the cake. The Beckham regime itself does the heavy lifting on tax. Madrid regional incentives are worth optimising for — but they should not drive the choice of autonomous community. — DPLL Tax & Legal · Editorial commentary, March 2026
How the autonomous communities compare
Madrid is currently the most generous to impatriates in regional-deduction terms, but the picture across Spain is mixed:
- Madrid. Multiple impatriate-applicable regional deductions (per above).
- Catalonia. No impatriate-specific deductions; some general deductions apply but at lower thresholds.
- Valencia. A modest 5% regional deduction on rental of habitual residence for under-35s. No impatriate-specific framework.
- Andalusia. No impatriate-specific deductions; one of the lower regional surcharges in the country.
- Basque Country and Navarre. These run separate foral fiscal regimes; the Beckham Law does not apply identically.
Practical implication
The extension does not change anyone substantive eligibility for the Beckham regime. What it does change is the maths for impatriates who were planning their Madrid arrival around a possible sunset of these deductions. If you are arriving in 2025 or 2026, the deductions are confirmed available; budget accordingly.