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HEALTH

Madrid raises age limit for women to have free IVF up to 45

Madrid will launch a new €4.5-billion fertility plan that will allow women in the region to access IVF treatment through the public health system if they’re under 45 years of age, as authorities in the Spanish capital try to encourage more women to have children.

Madrid raises age limit for women to have free IVF up to 45
Women in Madrid aged under 45 will be able to have four IVF attempts from now on. Photo: Martin BUREAU / AFP

Women in Spain become mothers at a later age than all their European counterparts, EU data shows, with the average Spanish woman having 1.34 children. 

Another study released in March 2021 found that the pandemic had made Spain’s birth rate drop further still to its lowest level in 80 years, and Spain’s National Statistics Institute estimates the country could lose five million inhabitants in the next 50 years, with immigration currently proving to be the best remedy to this population loss.   

With all these stats in mind, Madrid’s regional president Isabel Díaz Ayuso announced on Monday that she would tackle her region’s “demographic challenge” with the “greatest plan to boost the birth rate” yet, as well as measures to address the family-work balance, to be launched on January 26th. 

IVF age limit raised

With an investment of €4.5 billion over the next five years, the standout measure of the 80 to be introduced is that the age limit for women to access free in vitro fertilisation through the public healthcare system in Madrid will go from 40 to 45 years. 

The number of available attempts through public hospitals will be expanded from two to four attempts per woman. 

The legal age limit for IVF to be done privately in Spain is 50 years old.

According to the website eggonationfriends.com, “Spain is the most expensive European IVF destination – due to both very high standards of treatment and the wide availability of donors. The cost of a single own egg IVF cycle ranges from €4,100 to €8,200 while an egg donation cycle may cost from €5,900 to €11,000.”

The Community of Madrid’s new IVF treatment will also now be made available to women who already have another child.  Two new IVF units will be created and Madrid’s first ovocyte egg bank will be set up. 

“Each person will be able choose the centre among the seven currently available, with a single shared waiting list,” Ayuso told journalists on Monday. Waiting times from the first checkup to the actual IVF treatment currently vary from two to four years depending on the Madrid hospital. 

According to stats published by Spain’s Health Ministry and the Spanish Fertility Society (SEF), a total of 180,906 fertility treatments were carried out in Spain in 2019, of which 37,428 babies were born.

READ ALSO: Spain restores free IVF to singles, lesbians and now trans people

Other birth rate-boosting measures

Among the 80 measures which are yet to be fully revealed is the already implemented financial aid scheme in Madrid which grants €500 per month per baby to mothers under 30 with yearly earnings below €30,000.

In addition, there will be an extension of deductions of up to €2,100 in parents’ Personal Income Tax for the birth or adoption of a child over the first three years and a flat rate for self-employed women who return to work after motherhood.

Other measures for new mothers in the Spanish capital include making the work days more flexible, giving them tax incentives for property purchases or rent and priority access to the region’s rental VIVE Plan.

Ayuso has requested “the  involvement of the National Government, which is the one with broad powers, since many of the family and work balance measures require dialogue with the companies”.

Madrid’s regional president will request that Sánchez’s government implement a reduction of at least 50 percent of the employer’s social security quota for workers who join after parental leave and more tax incentives for bosses who give more flexibility to workers with children under the age of 12.

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TAXES

How foreigners in Spain’s capital can pay less tax with the new Mbappé Law

The regional government of Madrid is finalising the approval of the so-called Mbappé Law, a very favourable new personal income tax regime for foreigners who settle and invest in the Spanish capital.

How foreigners in Spain's capital can pay less tax with the new Mbappé Law

Similar to Spain’s Beckham Law, introduced in 2005, this piece of legislation is named after a famous footballer who will be the first to benefit from lower tax rates, as will other foreigners in Madrid.

Kylian Mbappé is a French footballer who currently plays for Paris Saint-Germain, but looks set to sign for Real Madrid this summer.

The objective of the right-wing Madrid government of Isabel Díaz Ayuso is to attract more foreign investment to the region with beneficial fiscal rates.

READ ALSO – Beckham Law: What foreigners need to know about Spain’s special tax regime

Unlike the Beckham though, the Mbappé Law is only designed to benefit foreigners who move to the region of Madrid, it’s not open to those who want to move elsewhere in Spain.

Also unlike the Beckham law, foreigners will only be able to reap the rewards of the Mbappé Law if they invest money into the region. This could be in the form of investments in companies or in vehicles, but it cannot include investments in property.

Specifically, applicants will be able to deduct 20 percent of all the money they invest in the Madrid region.

The law applies to regional personal income tax, which accounts for approximately half of entire tax payments in Spain, since the other part corresponds to the State’s collection.

Normally, a foreigner like Mbappé will be taxed in the highest income bracket, as they will earn well over €300,000 gross per year.

When the law is finally approved however, Mbappé could avoid paying the regional income tax entirely, in the event that 20 percent of his Madrid investments represent the same amount that he would have had to pay in taxes on his salary.

READ ALSO: Why you should move to this region in Spain if you want to pay less tax

How will the Mbappé Law work?

For example, if Mbappé earned €40 million gross (not his actual salary), he would normally be charged €18 million in personal income tax.

Of this, 24.5 percent would correspond to the state tax, and this would have to be paid as normal. This means the state would collect €9.8 million from him in tax.

The change happens with the rest of the tax – the regional tranche. If he doesn’t make any investments, which now seems unlikely, he would have to pay €8.2 million in tax to Madrid.

If on the other hand the French superstar invested €40 million in Spanish companies or state bonds – he could deduct €8 million, which represents 20 percent of that amount.

This would mean that Mbappé’s tax rate would remain at 24.5 percent, a marginal rate that is slightly higher than the personal income tax for a worker who earns €20,000 and receives around €1,300 net per month.

As a percentage, of course, the amounts in Mbappé’s case are going to be huge. So, instead of paying €18 million in total, he would only pay €9.8 million.

Overall, this legislation signals that Madrid will become even more attractive to foreign investors.

By contrast, those who move to Catalonia will have to pay 25.50 percent in regional income tax, which added to the 24.5 percent of the state tax would increase personal income tax by half. So as a Real Madrid player Mbappé would earn €30.2 million, but if he signed for Barça he would pocket €20 million.

What’s the catch?

There are a few caveats to the new law, which primarily depend on how long you stay in Madrid. The new regulations establish that you have to stay and live in Madrid for a total of six years. If you leave before those six years are up, then you will be forced to return part of the tax savings you made.

What does this mean for Madrid?

The regional government of Madrid estimates that 30,000 foreign investors could choose to move to the region specifically in order to benefit from the new law and that it will cost the public coffers €60 million per year.

The idea is that Madrid will continue to attract foreign investment. Madrid’s leader Isabel Díaz Ayuso recently claimed that: “Two out of every three euros that arrive in Spain as an investment from abroad do so in projects that are developed within the Community of Madrid. In the last decade, the flow of investments has doubled”.

Madrid already has some of the best tax incentives in Spain. Residents pay less tax on their income, assets, inheritance and property transactions and conditions are beneficial to high-income earners in particular.

Financial experts agree that Madrid is among, if not the top region, with the most lenient tax system in the country, and when the Mbappé law comes into force, the region will benefit from even more incentives.

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