4.3.8.1. Autonomous Community of Galicia.
For this year, taxpayers residing in the Autonomous Community of Galicia may apply the following deductions:
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For the creation of new companies or expansion of the activity of recently created companies
If among the assets or rights of economic content computed for the determination of the tax base there is any to which deductions were applied in the autonomous full quota of the personal income tax relating to the creation of new companies or expansion of the activity of recently created companies, or investment in the acquisition of shares or social participations in new or recently created entities, the taxpayer may apply a deduction of 75%, with a limit of 4,000 euros per taxpayer, in the part of the quota that proportionally corresponds to the aforementioned assets or rights. Failure to comply with the requirements for personal income tax deductions will result in the loss of this deduction.
Failure to comply with the requirements set out in the regulations for the aforementioned personal income tax deductions will result in the loss of this deduction in the asset declaration.
This deduction is incompatible with the deductions included in points 2 and 5.
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For investments in agricultural companies
Taxpayers may apply a 100% deduction on the portion of the tax rate that proportionally corresponds to the value of the following assets or rights:
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Share capital of:
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Forestry development companies regulated by Law 7/2012, of June 28, on forests in Galicia.
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Agricultural entities, agricultural cooperatives or community land exploitation entities whose exclusive purpose is agricultural activities.
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Entities whose purpose is the mobilization or recovery of agricultural land in Galicia, under 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 shares in the part that corresponds to the proportion existing 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.
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Loans made in favor of the entities mentioned in letter a above, as well as guarantees that the taxpayer personally constitutes 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 that results from applying to its total amount the proportion determined in accordance with the provisions of letter a above.
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Shares of capital partners in joint accounts established for the development of agricultural activities and in which the managing partner 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 that results from applying to its total amount the proportion determined in accordance with the provisions of letter a above.
Requirements
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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 transaction.
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The investments made must remain in the taxpayer's assets for a minimum period of five years from the day following the date on which the transaction is formalized in a public deed. In the case of financing operations, the maturity period must be greater than or equal to five years, and an amount greater than 20% of the principal amount cannot be repaid annually. During the same five-year period, the guarantees established must be maintained.
This deduction will be incompatible with the application of the exemptions of article 4 of the Wealth Tax Law to the same assets or rights, even if said exemption is partial and with the deduction included in point 1.
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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, rustic lands assigned to an agricultural operation are included and that the same is registered in the Registry of Agricultural Operations of Galicia.
Rural Lease: Taxpayers who lease rural land for the same period of time, in accordance with the conditions established in Law 49/2003, of November 26, on rural leases, will also be entitled to this deduction.
Taxpayers may deduct 100% of the portion of the tax that proportionally corresponds to the aforementioned assets or rights, provided that they are assigned to the agricultural operation for at least half of the calendar year corresponding to the accrual.
This deduction will be incompatible with the application of the exemptions of article 4 of the Wealth Tax Law to the same assets or rights, even if said exemption is partial.
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Due to the impact on economic activities of properties in historic centers
Requirements
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That among the assets or rights of economic content computed for the determination of the tax base are included real estate located in one of the historical centers determined in the annex of the Order of March 1, 2018 (DOG of 13)
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That said real estate assets are affected by an economic activity for at least half of the calendar year corresponding to the accrual.
Taxpayers will be able to deduct 100% of the portion of the tax that proportionally corresponds to said assets.
This deduction will be incompatible with the application of the exemptions of article 4 of the Wealth Tax Law to the same assets or rights, even if said exemption is partial.
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For participation in the own funds of entities that exploit real estate in historic centers
Requirements
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That the assets or rights of economic content computed for the determination of the tax base include shares in the equity of entities whose assets include real estate located in one of the historic centers determined in the annex of the Order of March 1, 2018.
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That said real estate is affected by an economic activity for at least half of the calendar year corresponding to the fiscal year.
Taxpayers may deduct 100% of the portion of the tax that proportionally corresponds to said shares.
The deduction will only apply to the value of the shares, determined according to the rules of this tax, in the part that corresponds to the proportion existing between said real estate assets, reduced by the amount of the debts used to finance them, and the value of the net assets of the entity.
To determine this proportion, the value deduced from the accounting records will be taken, provided that this faithfully reflects the true financial situation of the company.
This deduction is incompatible with the application of the exemptions in Article 4 of the Wealth Tax Law to the same assets or rights, even if said exemption is partial and with the deduction included in point 1.
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For the incorporation of assets and rights into the instruments for the mobilization or recovery of agricultural lands in Galicia
The taxpayer can apply a 100% deduction to 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 agricultural land in Galicia.
The assignment must be maintained for a period of at least five years, and the aforementioned assets and rights must be registered in the applicable registers, in accordance with the provisions of the aforementioned Law.
This deduction will be incompatible with the application of the exemptions of article 4 of the Wealth Tax Law to the same assets or rights, even if said exemption is partial.