Madrid has introduced new measures for the self-employed, including a 'tarifa cero' covering all social security contributions for freelancers who keep working after retirement age. No other region in Spain has introduced this measure. Comunidad de Madrid officials say it will cover the Seguridad Social payments of autónomos who draw a pension while continuing to work.
Isabel Díaz Ayuso and her team want Madrid to be seen as Spain’s economic engine. The region’s economy grew 3 percent last year, outpacing the national average and reaching three times the eurozone rate. Regional data and Seguridad Social reports point to 108,159 new jobs expected in 2025, while a record 3.86 million people are paying into Social Security.
Madrid accounts for nearly a fifth of Spain’s GDP and attracts 45 percent of the country’s foreign investment. Its self-employed sector is growing, with 443,000 registered freelancers and seven years of steady growth. Since 2019, the number of self-employed workers has risen 11.3 percent, almost double the national average. Comunidad de Madrid says it has implemented 35 tax reductions since 2019, targeting families, self-employed workers and students, as well as measures against depopulation. The figures on GDP and investment shares reflect trends from INE and Invest in Spain.
Ayuso’s government has also criticized national policy. Rocío Albert, the regional economy chief, calls Madrid’s freelancers "heroes" and says the central government "punishes" them. Madrid has allocated more than 143 million euros to support the self-employed during this term, with another 37 million euros set for 2026. That represents an 18 percent increase and is aimed at nearly 12,000 beneficiaries, information from official budget documents and regional press.
The 'tarifa cero' already covers 19,000 freelancers, paying their full social security contributions for the first year, with a possible extension into a second year. Under the new extension for active retirees, those who keep working past retirement age will have all their contributions covered while still drawing their pension. Regional publications say the measure aims to encourage experienced professionals to stay in the workforce.
Madrid is also offering a monthly grant of 1,250 euros to freelancers who need to hire a replacement during maternity or paternity leave, childcare, high-risk pregnancy, long illness or prolonged incapacity. The region will cover all social security contributions for the first 60 days of illness, supporting small businesses during temporary absences.
Family businesses and digital change
Family-run companies are basic to Madrid’s plan. The region is home to more than 20 percent of Spain’s family businesses and is committing over 16 million euros to a new support plan for 2026-2029. The plan includes direct grants of up to 10,000 euros for digital change projects using artificial intelligence, along with a platform to connect businesses without a successor with entrepreneurs and professionals.
Madrid’s economic management has drawn attention abroad. The region holds the top credit rating for its debt from all five major agencies. Scope Ratings recently raised Madrid to A+ with a stable outlook. That is the highest rating available to a Spanish region, since none can exceed the state’s own rating.
Cutting red tape and targeting basic industries
The regional government is working to reduce bureaucracy. Madrid has already introduced 738 measures to simplify rules, and plans a new law to further reduce the administrative burden on businesses and citizens. Under one rule, each new requirement must be matched by the removal of an existing one. New obligations will take effect only on January 2 or July 1 each year, giving companies, especially SMEs, time to adjust.
Madrid’s industrial policy is also shifting. The new Plan Industrial 2026-2030 will divide the region into five specialized districts. The north will focus on pharmaceuticals, life sciences and audiovisual industries; the east on logistics and automotive; the south on advanced industry, aerospace and defense; and the west on cybersecurity and artificial intelligence. The capital will focus on advanced services and digitalization.
Fiscal policy and the road ahead
The government is preparing its final budget of the term. A new half-point cut in the regional IRPF income tax is under consideration, one of Ayuso’s basic promises. The final decision depends on national talks over the new financing system agreed by Pedro Sánchez and regionalist parties.
Madrid’s measures for freelancers and family businesses, its lead to cut red tape and its focus on basic industries reflect the region’s aim to stay ahead as Spain’s economic leader. Its plans include zero-rate social security contributions for active retirees and digital grants.
