10.4.6. For investment in the acquisition of shares or interests in new or recently created entities

Taxpayers may deduct 30 percent of the amounts invested in the acquisition of shares or equity interests in entities that meet the requirements set out below.

The maximum amount of this deduction will be 6,000 euros per year. In the case of a joint declaration, the amount will be 6,000 euros for each taxpayer in the family unit that made the investment. The deduction will be applied in the year in which the investment is made and in the two following years, with a limit of 6,000 euros per year.

Taxpayers may specifically deduct investments made in companies in which research centres or universities have a stake.

In this case, the deduction percentage will be 50 percent and the maximum amount will be 12,000 euros per year and taxpayer.

Requirements

1. The participation achieved by the taxpayer, together with that of the 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 percent of the share capital of the company that is the object of the investment or its voting rights.

2. The entity in which the investment is to be made must meet the following requirements:

   1. Have the nature of a corporation, limited company, labor corporation or labor limited company.

   2. Have its registered office and tax domicile in the Balearic Islands.

   3. Develop an economic activity, which may not have as its main activity the management of movable or immovable assets, nor be dedicated to the leasing of properties.

   4. Have, at least, one person employed with a full-time employment contract and registered in the general Social Security system, domiciled in the Balearic Islands, and who is neither a partner nor a shareholder in the company.

   5. In the event that the investment has been made through a capital increase, the commercial company must have been incorporated in the last two years prior to the date of said capital increase, unless it is an innovative company in terms of research and development, which, in accordance with the provisions of Order ECC/1087/2015 regulating the obtaining of the seal of innovative small and medium-sized company, and creating and regulating the Registry of Innovative Small and Medium-sized Companies, has this seal in force and is registered in said Registry.

   6. The jobs must be maintained, understanding that this requirement is met when the total average workforce is maintained.

   7. The entity's annual turnover may not exceed the limit of 2,000,000 euros.

3. The taxpayer may be a member of the company's board of directors, but may not, under any circumstances, perform executive or management functions, or maintain an employment relationship with the entity.

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

5. The shares acquired must remain in the taxpayer's assets for a minimum period of four years.

6. The requirements set out in point 1 and in letters b, c, d, e, f and g must be met for a minimum period of four years from the effective date of the capital increase or incorporation agreement that gives rise to the right to the deduction.

Failure to comply with the above requirements and conditions will result in the loss of the tax benefit, and the part of the tax that has not been paid must be included in the declaration for the year in which the failure occurred, together with the corresponding late payment interest. 

Completion

A data capture window will open in which you must indicate the amount paid with the right to deduction. Indicating the NIF of the entity and must indicate, if applicable, that the investment is in companies owned by research centers or universities.

 The program will transfer the deduction to Annex B.7 of the declaration.