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Madrid regional government policy and controversies

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2026-10-05 17:32 UTC → 2026-10-06 15:13 UTC · added ~~removed~~

Isabel Díaz Ayuso, President of the Community of Madrid, continues to face scrutiny over the regional government’s purchase of a luxury penthouse in Chamberí for approximately 6.3 million euros. While Ayuso defended the transaction as a temporary office solution that would eventually fund forest fire reconstruction, she recently faced criticism following a verbal slip during a press appearance, where she referred to ‘public money’ before correcting herself to ‘my personal money’ while discussing resource management. During the State of the Region Debate, Ayuso outlined several social and economic reforms. Housing initiatives include constructing 3,100 affordable rental homes—with 2,500 units in the Plan Vive program and 600 for vulnerable groups—and investing 450 million euros in the ‘Rehabilitar Madrid’ program. Ayuso’s housing policies have drawn direct confrontation at ‘The District’ real estate fair, where activists disrupted the event to denounce the influence of large investment funds. While Housing Minister Isabel Rodríguez criticized Ayuso for providing a ‘red carpet’ to vulture funds, Madrid officials announced plans to tender the third phase of the ‘Plan Suma Vivienda’ public-private partnership to increase affordable rental stock. To ease housing access for residents under 40, Ayuso has proposed two tax reductions for the 2027 regional budget. Effective January 1, 2027, the Property Transfer Tax (TPO) for second-hand primary residences valued at or below 450,000 euros will be reduced from 6% to 4%. Additionally, the Tax on Documented Legal Acts (AJD) for new construction properties will drop from 0.75% to 0.4%. These measures are projected to provide total annual taxpayer savings of approximately 116 million euros. The ITP reduction is expected to benefit roughly 40,000 young people, with an average saving of 2,850 euros per person, while the AJD reduction is projected to provide 2.1 million euros in annual savings for approximately 4,200 people.

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