Skip to main content
Form 100. Personal Income Tax Declaration 2023

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

Amount

  • The 30  % of the amounts invested during the year in the acquisition of shares, social participations or mandatory or voluntary contributions made by partners as a result of agreements to establish companies or increase capital in companies that meet the requirements set out below.

    In the case of taxpayers who died before April 14 the investment can only be materialized in the acquisition of shares or corporate participations.

    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 has made the investment.

    The deduction will be applied in the year in which the investment materializes and in the following two years, with a limit of 6,000 euros per year.

    In the case of taxpayers who died before April 14 the maximum limit of the deduction is 6,600 euros.

  • The percentage will be 50% with a maximum amount of 12,000 euros ( 13,200 euros in the case of taxpayers who died before April 14) by year and taxpayer when the investments are made in companies owned by research centers or universities.

    This limit is not independent of the general limit of 6,000 euros (6,600 euros). Therefore, in the event that a taxpayer makes investments in companies owned by research centers or universities and other investments in the acquisition of shares or social participations in new or recently created entities, the maximum deduction limit will be 12,000 euros ( 13,200 euros)

Requirements

  1. The participation achieved by the taxpayer, together with those of the spouse or persons linked by reason of kinship, in a direct or collateral line, by consanguinity or affinity, up to the third degree included, may not exceed 40% of the share capital of the target company. of the investment or their voting rights.

  2. The entity in which the investment takes place will have to meet the following requirements:

    1. Have the nature of a public limited company, limited company, labor limited company or labor limited company or cooperative society. In the case of taxpayers who died before April 14, the investment cannot be made in cooperative societies.

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

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

    4. Have, at a minimum, one employed person with a full-time employment contract and registered in the general Social Security regime, domiciled in the Balearic Islands, and who is neither a partner nor a participant 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 matter of research and development, which, in accordance with the provisions of Order ECC/1087/2015, which regulates obtaining the seal of small and medium-sized innovative company, and creates and regulates the Registry of Small and Medium-sized Enterprises Innovative, has this seal in force and is registered in said Registry.

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

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

  3. The taxpayer may be part of the board of directors of the company, without, in any case, being able to carry out executive or management functions, nor maintain an employment relationship with the entity.

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

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

  6. The requirements established in letters b, c, d, f and g of point 2 and the maximum participation limit established in point 1 as well as the prohibition contained in point 3 must be met for a minimum period of four years from the date of effectiveness of the capital increase agreement or constitution that gives rise to the right to deduction.

Failure to comply with the requirements and conditions established in points 1, 3, 5 and 6 will entail 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. along with the corresponding late payment interest.

Completion

A data capture window will open in which it will reflect the amount paid with the right to deduction, the NIF of the entity and if the investment is made in companies owned by research centers or universities, it will mark the box enabled for that purpose.

The program will transfer the deduction to Annex B.8 of the declaration.