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Form 100. Personal Income Tax Return 2023

10.12.8. By investment in the acquisition of shares and social participations of new or recently created entities

Amount 

  • As a general rule, 40% 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 or Limited Liability Company. applicable deduction limit is 9,279 euros per year.

  • 50% of the amounts invested in the year in the acquisition of shares, interests and social contributions as a result of agreements to establish or increase the capital of employee-owned corporations, employee-owned limited liability companies and cooperative companies with a deduction limit of 12,372 euros.

  • 50% of the amounts invested in the case of companies created or participated in by universities or research centers, with a limit of deduction of 12,372 euros.

Requirements

  1. That as a consequence of the participation acquired by the taxpayer, computed together with that held in the same entity by his/her spouse or persons related to the taxpayer by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, no more than 40% of the total share capital of the entity or its voting rights are held on any given day of the calendar year.

  2. That said participation is maintained for a minimum of three years.

  3. That the entity from which the shares or interests are acquired meets the following requirements:

    1. That it has its registered office and tax domicile in the Community of Madrid.

    2. That develops an economic activity. For these purposes, it will not be considered that an economic activity is carried out when its main activity is the management of movable or immovable assets, in accordance with the provisions of article 4.Eight.Two.a) of Law 19/1991, of June 6, on the Wealth Tax.

    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 hired with a full-time employment contract and registered in the General Social Security Regime. This requirement will not be applicable to Labor Limited Companies, Labor Limited Liability Companies or cooperatives.

    4. That, in the event that the investment made corresponds to a capital increase of the entity, said entity had been established within the three years prior to the capital increase and that 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 with the previous requirements, and said increase is maintained for at least another twenty-four months.

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

Completion

Through a data capture window you must indicate the NIF of the entity and the amounts invested with the right to the deduction. The program will transfer the amount to Annex B8.