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Practical Income Manual 2021.

By investment in social economy entities

Regulations: Art. 110-19 Text Recast of the provisions issued by the Autonomous Community of Aragon regarding transferred taxes, approved by Legislative Decree 1/2005, of September 26.

Deduction amount and maximum limit

  • 20 percent of the amounts invested during the year in contributions made with the purpose of being a partner in entities that are part of the social economy referred to in the following section.

  • The maximum amount of this deduction is 4,000 euros , both in individual taxation and in joint taxation.

Requirements and other conditions for the application of the deduction

The application of this deduction is subject to compliance with the following requirements and conditions:

  1. The participation achieved by the taxpayer, computed together with those of the spouse or persons united by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, may not exceed 40 percent of the capital of the entity that is the object of the investment or its voting rights .

  2. The entity in which the investment must materialize will have to meet the following requirements :

    1. Be part of the social economy , in the terms provided in Law 5/2011, of March 29, on Social Economy ( BOE of 30 ).

      In accordance with article 6 of Law 5/2011: "The Ministry of Labor and Immigration (currently the Ministry of Labor and Social Economy), following a report from the Council for the Promotion of the Social Economy, and in coordination with the Autonomous Communities , will prepare and keep updated a catalog of the different types of entities that make up the social economy, taking into account the principles established in this law and in coordination with the existing catalogs at the regional level.

      The catalogs of social economy entities must be public. Advertising will be effective by electronic means.

    2. Have your registered and tax domicile in Aragón .

    3. Have, at least, one employed person with full-time employment contract, and registered in the general Social Security regime.

  3. The requirements established in points 1, 2 and 3 above must be met for a minimum period of five years counting from the contribution.

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

  5. The contributions must be maintained in the taxpayer's assets for a minimum period of five years .

Loss of the right to the deduction made

Non-compliance with the requirements and conditions established in letters a, d and d above will entail the loss of the tax benefit and, in such case, the taxpayer must include in the tax return corresponding to the year in which the non-compliance occurred the part of the tax. that had stopped being paid as a result of the deduction made, together with the accrued late payment interest.


This deduction will be incompatible, for the same investments, with the deductions "For investment in shares of entities listed in the segment of expanding companies of the Alternative Stock Market" and "For investment in the acquisition of shares or social participations in new or recently created".

Note: Taxpayers entitled to the deduction must complete the section "Additional information to the regional deduction of Aragon for investment in social economy entities " of Annex B.8 of the declaration in which, in addition to the amount of the investment with the right to deduction, the NIF of the entity and, if it exists, of the second entity must be recorded, indicating the amount of the investment with the right to deduction in the corresponding box.