Madrid Approves Anti-Hyperregulation Law to Boost Investment

The new regulation aims to streamline procedures, eliminate obsolete rules, and reduce bureaucracy for businesses and citizens.

Generic image of a judge's gavel on official documents with a blurred Spanish flag.
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Generic image of a judge's gavel on official documents with a blurred Spanish flag.

The Community of Madrid will approve the Law on Measures Against Hyperregulation in tomorrow's Governing Council, designed to simplify procedures and eliminate obsolete regulations that hinder investment.

The regional executive's president, Isabel Díaz Ayuso, announced the initiative during the closing of the XXIX National Congress of Family Business. The law establishes that for every new administrative burden imposed on companies, another of equivalent cost must be eliminated, and organizational rules will have an expiration date to prevent inertia-driven survival of what is no longer useful.
The bill, which will be sent to the Assembly of Madrid for debate, includes evaluating regulations before and after their implementation to determine their effectiveness. New business obligations will only come into effect on January 2nd and July 1st, a calendar inspired by the British model to facilitate adaptation for businesses, especially SMEs.
The participation of private entities in managing administrative procedures will be regulated, subject to accreditation and controls to guarantee the rights of citizens and companies. Furthermore, the Investment Accelerator will be strengthened with preferential processing and reduced deadlines for projects of special interest, and test spaces will be created to trial new products and services.
The project also promotes the use of data and artificial intelligence in public management and the digitalization of procedures. Through the Open Line Against Hyperregulation, 738 norms have already been simplified, including modifications to the Land Law and the extension of responsible declarations for social services.
This initiative follows recommendations from organizations like the OECD, which link clear and simple regulations with economic growth. The text does not involve additional expenditure but anticipates the reduction of existing administrative obligations.
Based on information from the official source: Comunidad de Madrid — Notas de prensa (06/10/2026)