Skip to main content
Practical Income Manual 2022.

Purpose, maximum base and percentage of the deduction

Object of the deduction

Taxpayers may apply this deduction for the amounts paid in the year for the subscription of shares or participations in new or recently created companies when the requirements and conditions indicated below are met, being able, in addition to contributing capital, to collaborate with their business or professional knowledge in the development of the entity in which they invest in the terms established by the investment agreement between the taxpayer and the entity.

For the purposes of this deduction, it can be considered that a valid investment allows the enjoyment of the investment made by someone who, in a capital increase of a new or recently created company, contributes a credit that he has against it, always that the other requirements required by article 68.1 of the Personal Income Tax Law are met. See in this regard the Resolution of the TEAC of June 1, 2020, Claim number 00/06580/2019 , recourse to appeal for unification of criteria.

Attention : This deduction is exclusively state and, therefore, only reduces the full state quota.

Deduction base and maximum amount

The maximum deduction base is 60,000 euros per year and is made up of the acquisition value of the shares or units subscribed.

The amounts paid for the subscription of shares or participations not deducted because they exceed the maximum annual deduction base may not be deducted in subsequent years.

The amounts paid for the subscription of shares or participations will not be part of the deduction base when with respect to such amounts the taxpayer practices a deduction established by the Autonomous Community in the exercise of their powers.

Furthermore, when the taxpayer transfers shares or participations and opts for the application of the reinvestment exemption regulated in article 38.2 of the Personal Income Tax Law , will only form part of the base of the deduction corresponding to the new subscribed shares or participations the part of the reinvestment that exceeds the total amount obtained in the transfer of those.  

In no case can a deduction be made for new shares or participations as long as the amounts invested do not exceed the amount of 60,000 euros per year, mentioned above.

Regarding the exemption for reinvestment of capital gains obtained from the transfer of shares or participations in new or recently created companies, see Chapter 11.

Percentage of deduction

The applicable deduction percentage on the amounts paid in the year for the subscription of shares or participations in new or recently created companies, in the terms previously mentioned, is 30 per 100 .