10.10.7. For investment in the acquisition of shares or corporate interests as a result of agreements to establish or increase capital in commercial companies

Taxpayers may deduct from their regional tax base of the amounts invested during the year in the acquisition of shares or corporate interests as a result of agreements to form companies or increase capital in commercial companies that take the form of a Public Limited Company, Limited Liability Company, Labour Public Limited Company, Labour Limited Liability Company or Cooperative Company, with a maximum limit of euros

Requirements

1. The participation acquired by the taxpayer, computed together with that held in the same entity by his/her spouse or persons related by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, may not exceed 40% on any day of the calendar year, of the total share capital of the company that is the object of the investment or of its voting rights.

2. The shares acquired must remain in the taxpayer's assets for a minimum period of three years following the incorporation or expansion.

3. The taxpayer must not perform executive or management functions in the entity.

4. The entity in which the entity is to be materialized must meet the following requirements:

   1. It must have its registered office and tax domicile in Extremadura.

   2. That develops an economic activity. For these purposes, it will not be considered that it carries out an economic activity when its main activity is the management of movable and immovable assets.

   3. That, in the event that the investment made corresponds to the constitution of the entity, from the first fiscal year it has at least one person with a full-time employment contract or two people with part-time employment contracts, provided that the total number of hours in the case of a part-time employment contract is equal to or greater than that established for a person with a full-time employment contract. In any case, workers must be registered with the corresponding Social Security system and the conditions of the contract must be maintained for at least 24 months.

   4. In the event that the investment is made through a capital increase, the commercial company must have been established in the three years prior to the date of this increase, and in addition, the average workforce of the entity during the two fiscal years following the increase increases with respect to the average workforce it had in the previous twelve months by at least one person who meets the requirements of paragraph 3, and said increase is maintained for at least another 24 months.

      To calculate the total average workforce of the entity and its increase, the number of people employed will be taken into account, taking into account the contracted working day in relation to the full working day.

5. Transactions to which the deduction is applicable must be formalized in a public deed, in which the identity of the investors and the amount of the respective investment must be specified.

Completion

You must directly indicate the amounts invested with the right to deduction.

If the investment is shared by both spouses, 50% must be reported in each spouse's tax return.