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Form 100. Personal Income Tax Return 2024

Amortization provisions

A deductible expense is the amount recorded in the concept of amortization of tangible and intangible fixed assets and real estate investments that corresponds to the effective depreciation suffered by the different elements due to operation, use, enjoyment or obsolescence.

Depreciation is considered effective when it is the result of applying any of the methods provided for in article 12.1.a of the Corporate Income Tax Law, which in summary are the following:

  1. Linear amortization coefficients established as of January 1, 2015, in the amortization table included in article 12.1.a) of the LIS.

  2. Constant percentage on the value pending amortization.

  3. Digit number method.

  4. Plan formulated by the taxpayer and accepted by the Administration.

  5. Justification of the amount by the taxpayer.

The depreciation basis is the purchase price of the item, including any additional costs incurred until it is put into working order, or its production cost, excluding, where applicable, the residual value.

Amortization will be carried out from the moment the item is put into working order if it belongs to tangible fixed assets or real estate investments, or from the moment it is in a condition to produce income for intangible fixed assets.

Intangible assets are generally amortized based on their useful life. However, when it cannot be estimated reliably, the amortization will be deductible up to the maximum annual limit of one twentieth of its amount. The amortization of goodwill will be deductible up to a maximum annual limit of one twentieth of its amount (5%).

The provision in a financial year of amortizations greater than those permitted for tax purposes does not constitute a deductible expense, without prejudice to the fact that the excess may be deductible in subsequent periods.

Heritage elements used

In the case of tangible fixed assets and real estate investments that are acquired used, the depreciation calculation will be carried out according to the following criteria:

  • If the acquisition value of the used item is taken as the basis for depreciation, the maximum coefficient that can be used will be double the maximum linear depreciation coefficient set in the depreciation table.

  • If the original acquisition price or production cost is taken as the amortization base, the maximum linear amortization coefficient set in the amortization tables for said element will be applied.

  • If the original purchase price or production cost is not known, the taxpayer may determine it through expert analysis, and once established, the procedure will be followed as provided in the previous letter.

For these purposes, buildings less than ten years old will not be considered used heritage elements.

Amortization freedom assumptions

Freedom of depreciation in new elements of fixed tangible assets. Transitional scheme

Taxpayers who, as of March 31, 2012, had amounts pending application for the following investments that have enjoyed the freedom of amortization provided for in the Eleventh Additional Provision of the consolidated text of the LIS:

  • Investments made in 2009 and 2010 to which the freedom of amortization with maintenance of employment of the Eleventh Additional Provision of the consolidated text of the LIS is applicable, as amended by Royal Decree-Law 6/2010, of April 9, on measures to promote economic recovery and employment.

  • Investments made from January 1, 2011 to March 30, 2012 to which the freedom of amortization without maintaining employment of the Eleventh Additional Provision of the consolidated text of the LIS is applicable, as amended by Royal Decree-Law 13/2010, of December 3, on actions in the fiscal, labor and liberalizing fields to promote investment and job creation.

Taxpayers who, as of March 31, 2012, have not fully amortized the investment made for this concept may continue to apply the amounts pending under the conditions and with the requirements established by the Eleventh Additional Provision of the consolidated text of the LIS, as amended by Royal Decree-Law 6/2010, of April 9, and by Royal Decree-Law 13/2010.

Amounts pending amortization may be applied within the limit of the positive net income from the economic activity to which the assets were assigned prior to the deduction of outstanding amounts and, where applicable, the 5% reduction for provisions and expenses that are difficult to justify provided for in the simplified direct estimation method.

Freedom of amortization (article 12.3 of the LIS)

Yes, the following items can be freely amortised:

  • Tangible and intangible assets, excluding buildings, used in research and development activities.

  • Buildings can be depreciated on a straight-line basis over a period of 10 years, from when they are put to use for research and development activities.

  • Expenses on research and development activities such as intangible assets, excluding amortisation of items eligible for free amortisation.

  • Tangible and intangible assets of entities classified as priority association operations in accordance with Act 19/1995 of 4 July on modernisation of farming operations, acquired during the first five years from the date of their recognition as a priority operation.

  • Elements of new tangible fixed assets whose unit value does not exceed 300 euros, up to the limit of €25,000 referred to the tax period. If the tax period were less than one year long, the stated limit would be the result of multiplying 25,000 euros by the corresponding proportion between the duration of the tax period with respect to the whole year.

Investments that use energy from renewable sources (Additional Provision Seventeenth LIS)

Investments in facilities for self-consumption of electrical energy that use energy from renewable sources in accordance with the provisions of Royal Decree 244/2019, of April 5, which regulates the administrative, technical and economic conditions for self-consumption of electrical energy, as well as those facilities for thermal use for own consumption that use energy from renewable sources, which replace facilities that use energy from non-renewable fossil sources and which are made available to the taxpayer as of the entry into force of Royal Decree-Law 18/2022, of October 18, which approves measures to strengthen the protection of energy consumers and contribute to the reduction of natural gas consumption in application of the "+ Security for your Energy (+SE) Plan", as well as measures regarding the remuneration of personnel in the service of the public sector and the protection of temporary agricultural workers affected by the drought, and come into operation in 2023 and 2024, may be freely amortized in the following tax periods:

  • That they begin or conclude in 2023, when the elements referred to in this section come into operation in 2023.

  • That they begin or conclude in 2024, when the elements referred to in this section come into operation in 2024.

The freedom to depreciate will be conditional on the entity's total average workforce remaining the same as the average workforce of the previous twelve months during the 24 months following the start date of the tax period in which the acquired assets enter into operation.

Buildings will not be eligible for free amortization.

The maximum investment amount eligible for the free amortization regime will be 500,000 euros.

Electric vehicles and charging infrastructure (Eighteenth Additional Provision of the Spanish Law on the Use of Electric Vehicles)

New fuel cell electric vehicles (FCV), fuel cell hybrid electric vehicles (FCHV), battery electric vehicles (BEV), extended range electric vehicles (REEV) or plug-in hybrid electric vehicles (PHEV) and investments in new charging infrastructure for electric vehicles, whether standard or high power, that are related to economic activities may apply for the freedom of depreciation when they come into operation in 2024 and 2025.

Investments in new charging infrastructure for electric vehicles, whether standard or high power, as defined in Article 2 of Directive 2014/94/ EU of the European Parliament and of the Council of 22 October 2014 on the deployment of alternative fuels infrastructure, related to economic activities, and which come into operation in the tax periods beginning in 2024 and 2025, may be freely amortized.

For taxpayers who died before June 28, 2024, the depreciation of electric vehicles and charging infrastructure that meet the requirements of the previous paragraph and entered into operation in 2023 and 2024 can be depreciated by applying double the coefficient provided in the depreciation tables.

In any case, the following requirements must be met to apply the freedom of amortization: