10.6.21. For investments from new taxpayers from abroad

Amount

Individuals not resident in Spain who become personal income tax (IRPF) taxpayers in Cantabria may apply a deduction of 20% of the acquisition valueincluding the expenses and taxes inherent to the acquisition, excluding interest, that would have been paid by the acquirer in:

1. Real estate that is not intended for housing or tourist accommodation, nor related to an economic activity, among others: Commercial premises or offices, building plots, rural land, garages or back areas, provided they are not an annex to a property intended for housing and their use is different from that of an accessory to the dwelling, and provided they are not affected by an economic activity.

   On the contrary, they will not entitle you to the deduction, among others: The property intended to be the taxpayer's main residence and the accessories (garages, storage rooms, etc.) that have that status according to the Personal Income Tax Law, the homes intended for rental according to the Urban Leases Law, the homes available to the taxpayer, those intended for tourist accommodation.

2. Securities representing the transfer of equity capital to third parties, whether traded or not, on organized markets.

3. Securities representing equity participation in any type of entity, whether traded or not, on organized markets.

Requirements and conditions

• In the case of investment in real estate, these must be located in Cantabria.

• In the case of the values ​​defined in the letters b. and c. According to the previous section, the entity must have its registered and tax domicile in Cantabria and carry out an economic activity.

  An economic activity will not be considered to be carried out when the main activity is the management of movable or immovable property, in accordance with the provisions of the Wealth Tax Law.

• The direct or indirect participation of the taxpayer, together with that held in the same entity by his spouse, civil partner, or any person linked to the taxpayer by kinship, in a direct or collateral line, by consanguinity or affinity, up to and including the second degree, may not be, during any day of the calendar years of maintenance of the participation, greater than 40% of the share capital of the entity or of its voting rights, and the taxpayer may not in any case carry out executive or management functions or maintain an employment relationship in the entity subject to the investment.

• The investment must be made in the same year in which the tax residence in Cantabria is acquired, in accordance with the Personal Income Tax regulations, or in the following year.

  However, in the case of investment in securities representing the transfer to third parties of own capital issued by Spanish entities and securities representing participation in the own funds of Spanish entities, the investment may also be made in the year prior to the acquisition of the aforementioned residence.

• The taxpayer must maintain the acquired investment for a period of six years, with onerous transfers of the acquired assets being valid with full reinvestment of the amount obtained from the transfer, within one month from the transfer.  The reinvestment can be made in an asset of a different category than the asset that was transferred.

• The taxpayer must not have resided in Spain in the five years prior to the change of residence to the territory of Cantabria.

• The deduction may be applied in the year in which the investment occurs and in the five following years immediately and successively in case of insufficient full tax liability.

  If the investment was made in the year prior to acquiring the status of taxpayer for Personal Income Tax (IRPF) in Cantabria, for the assets for which this possibility is foreseen, the deduction may be applied in the year in which the aforementioned tax residence is acquired or in the five following immediate and successive years, in case of insufficient full tax liability.

• The deduction may be applied by all those who become personal income tax (IRPF) taxpayers in Cantabria from January 1, 2025 onwards, even if the investments were made during the previous year, in the cases listed above.

• The taxpayer must maintain the status of IRPF taxpayer in Cantabria until the last year of the investment maintenance period.

  The loss of residence in Cantabria during the period of obligation to maintain the investment or the failure to comply with the obligation to maintain the investment made, including the case of transfer without total reinvestment, will result in the loss of the deduction applied unless the failure to comply with this requirement is due to the death of the taxpayer.

Incompatibility

This deduction will be incompatible, for the same investments, with the deduction "For investment in the acquisition of shares or equity interests of new or recently created entities."

Completion

• If the investment is made in real estate, the amount and the cadastral reference must be stated for each property. If the property has no reference, check the box provided for that purpose.

• If the investment is made in securities, the amount of the investment and the NIF of the entity must be stated.

The program will transfer the data to Annex B.15 of the declaration.