Due to tax reforms from socialist governments in their home countries, wealthy Latin Americans are flocking to Madrid as a result of a leftward shift. Madrid's cultural and linguistic similarities and low taxes have attracted thousands of people from Mexico, Venezuela, Peru, and Argentina. As a result, galleries from Mexico, Chile, Colombia, Brazil, and other countries have opened spaces in Madrid, capitalizing on the growing market for Latin American art.

The Arco Madrid contemporary art fair has become a hub for Latin American art in Europe, attracting many regional collectors and galleries. However, the future of Madrid's tax haven status is uncertain, as a struggle between the conservative regional government and the leftist national government jeopardizes the city's financial status. The Spanish Prime Minister, Pedro Sánchez, has dismissed tax cuts by the Madrid government designed to attract wealthy foreigners. Should the tax cuts be reversed, wealthy Latin Americans may look for other countries to invest in, leaving galleries unsure of their future in Madrid.