4.3.8.1. Autonomous Community of Galicia.

For this year, taxpayers residing in the Autonomous Community of Galicia may apply the following deductions:

1. Due to the creation of new companies or expansion of the activity of recently created companies

   When among the assets and rights computed for the determination of the tax base there is one to which deductions were applied in the full autonomous personal income tax quota relating to the creation of new companies or expansion of the activity of recently created companies, or investment of shares or social participations in new or recently created entities, taxpayers may deduct 75% of the part of the quota that proportionally corresponds to the aforementioned assets or rights with a maximum deduction limit of 4,000 euros per taxpayer.

   Failure to comply with the requirements established in the regulations for the aforementioned personal income tax deductions will determine the loss of this deduction in the Asset declaration.

   This deduction is incompatible with the deductions included in points 2 and 5.

2. For investments in agricultural companies

   Taxpayers can apply a 100% deduction of the part of the tax payment that proportionally corresponds to the value of the following assets or rights:

   1. Participations in the share capital of:

      • Forest development societies regulated by Law 7/2012, of June 28, on the mountains of Galicia.

      • Agricultural entities, agricultural cooperatives or community exploitation of land whose exclusive purpose is agricultural activities.

      • Entities whose objective is the mobilization or recovery of agricultural land in Galicia, under the protection of the instruments provided for in Law 11/2021, of May 14, on the recovery of agricultural land in Galicia.

      The deduction only applies to the value of these participations in the part that corresponds to the proportion between the assets necessary for the exercise of the agricultural activity, reduced by the amount of the debts derived from it, and the value of the net assets of the entity.

      To determine this proportion, the value deduced from the accounting must be taken, provided that it faithfully reflects the true financial situation of the entity.

   2. Loans made in favor of the entities mentioned in letter a above, as well as guarantees that the taxpayer constitutes personally in favor of said entities.

      In this case, the deduction only applies to the amount that finances the entity's agricultural activity. It is understood that they finance this activity in the part resulting from applying to its total amount the proportion determined in accordance with the provisions of letter a above.

   3. Participations of the capitalist partners in joint accounts established for the development of agricultural activities and in which the managing participant is one of the entities mentioned in letter a above.

      The deduction only applies to the amount that finances the entity's agricultural activity. It is understood that they finance this activity in the part resulting from applying to its total amount the proportion determined in accordance with the provisions of letter a above.

   Requirements

   • The investments to which the deduction is applicable must be formalized in a public deed, specifying the identity of the taxpayers who intend to apply it and the amount of the operation.

   • The investments made must be maintained in the taxpayer's assets for a minimum period of five years starting from the day following the date on which the operation is formalized in a public deed. In the case of financing operations, the maturity period is required to be greater than or equal to five years, and an amount greater than 20% of the principal amount may be amortized annually. During this same period of five years, the guarantees established must be maintained

   This deduction will be incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, even if said exemption is partial and with the deduction included in point 1.

3. Due to the impact of rural land on agricultural exploitation and rural leasing

   Agricultural exploitation: That among the assets or rights of economic content computed for the determination of the tax base include rural land assigned to an agricultural holding and that it be registered in the Registry of Agricultural Holdings of Galicia.

   Rustic lease: Those taxpayers who lease rural land for the same period of time will also be entitled to this deduction, in accordance with the conditions established in Law 49/2003, of November 26, on rural leases.

   Taxpayers may deduct 100% of the part of the quota that proportionally corresponds to the aforementioned goods or rights as long as they are used for agricultural exploitation for at least half of the calendar year corresponding to the accrual.

   This deduction will be incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, even if said exemption is partial.

4. Due to the impact on economic activities of properties in historic centers

   Requirements

   • That among the assets or rights of economic content computed for the determination of the tax base include real estate located in one of the historic centers determined in the annex to the Order of March 1, 2018 (DOG of 13)

   • That said real estate is subject to an economic activity for at least half of the calendar year corresponding to the accrual.

   Taxpayers may deduct 100% of the part of the tax that proportionally corresponds to said assets.

   This deduction will be incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, even if said exemption is partial.

5. For participation in the own funds of entities that exploit real estate in historic centers

   Requirements

   • That among the assets or rights of economic content computed for the determination of the tax base include participations in the own funds of entities whose assets include real estate located in one of the historic centers determined in the annex to the Order of 1 March 2018.

   • That said real estate is used for economic activity for at least half of the calendar year corresponding to the fiscal year.

   Taxpayers may deduct 100% of the part of the quota that proportionally corresponds to said participations.

   The deduction will only reach the value of the shares, determined according to the rules of this tax, in the part that corresponds to the existing proportion between said real estate, reduced by the amount of the debts intended to finance them, and the value of the net assets of the entity.

   To determine this proportion, the value deduced from the accounting will be taken, provided that it faithfully reflects the true financial situation of the company.

   This deduction is incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, even if said exemption is partial and with the deduction included in point 1.

6. By incorporation of assets and rights to the instruments of mobilization or recovery of agricultural lands in Galicia

   The taxpayer can apply a 100% deduction in the part of the quota that proportionally corresponds to assets incorporated into agroforestry polygons, model village projects or joint management groups provided for in Law 11/2021, of May 14, on the recovery of the agrarian land of Galicia.

   The affiliation must be maintained for a period of at least five years, and the aforementioned assets and rights must be registered in the applicable registries, in accordance with the provisions of the aforementioned Law.

   This deduction will be incompatible with the application for the same assets or rights of the exemptions of article 4 of the Wealth Tax Law, even if said exemption is partial.