© Reuters. Madrid assures Mexicans that tax on the rich will not affect their investments
Mexico City, Mar 30 (.).- The investment attraction agency for the Madrid region, Invest in Madrid, assured this Thursday in Mexico that its community is the best option for investment despite the new solidarity tax on the great fortunes launched by the Government of Pedro Sánchez.
“We have calculated the negative effects that this (the tax) would have and we have quickly generated a response so that investors know that we are following this line of tax reduction or elimination and that it does not confuse the foreign investor, our strategy does not change” Rodrigo de la Mota, general director of Invest in Madrid, told EFE at an event held at the Spanish Chamber of Commerce (Camescom) in Mexico.
On February 1, the Community of Madrid filed an appeal in the Constitutional Court (TC) against the aforementioned tax, arguing that it violates the financial autonomy of the autonomous communities.
De la Mota considered that the tax is “unfair and unconstitutional.”
In addition, they specified that, according to the calculations of the Community of Madrid, foreign investment in the region will be reduced by 1,600 million euros a year and up to 5,000 million euros may be stopped from entering.
Given the existence for the moment of said tax, Madrid will implement a tax incentive to compensate and continue attracting foreign investors.
They detailed that this incentive consists of establishing a 20% deduction on the investment made that can be deducted for six years, without a minimum investment and on all types of assets (financial, real estate).
And they went to Mexico to give these details because it is one of the fundamental countries for Invest in Madrid.
“The Latin American market is strategic for us: if we take all of Latin America as a country, it would be the fourth most important investor in Spain. And, within Latin America, Mexico represents the vast majority. Mexico by itself is the sixth foreign investor country in Spain and in Madrid. That’s why we’re here again,” De la Mota added.
Lastly, he said that, in addition to the wealth tax issues, they came to Mexico to communicate to companies in the country that are thinking of starting their activities in Spain or Europe, that Madrid offers many competitive advantages.
These advantages are grouped into three blocks.
First of all, everything that Madrid represents as the economic engine of Spain; on the other hand, the presence of both transport and technological infrastructures that are well above the European and Spanish average, and finally, the presence of the prepared and qualified talent that companies need to be able to carry out their activity.
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