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Practical Income Manual 2022.

By investment in the acquisition of shares and participations as a consequence of agreements to establish companies or increase capital in commercial companies

Regulations: Art. 12e of Law 8/2013, of November 21, of the Autonomous Community of Castilla-La Mancha, on Tax Measures 

Amount and maximum limit of the deduction

  • 20 percent of the amounts invested during fiscal year in the acquisition of shares or corporate participations as a result of agreements to establish companies or increase capital in commercial companies that take the form of Public Limited Company or Limited Liability Company, Labor Limited Company, Labor Limited Liability Company and Cooperative Society .

  • The applicable deduction limit is 4,000 euros per year per taxpayer.

Requirements and other conditions for the application of the deduction

To apply the deduction, the following requirements must be met:

  • The participation acquired by the taxpayer as a consequence of the investment, computed together with that held in the same entity by his spouse or persons linked to the taxpayer by reason of kinship up to and including the third degree, in straight or collateral line, due to consanguinity or affinity, cannot be higher during any day of the calendar year than 40 percent of the total share capital of the entity or its voting rights .

  • That said participation be maintained in the taxpayer's assets for a minimum of three years following the constitution or expansion .

  • The taxpayer during said minimum period of three years must not exercise executive or management functions in the entity.

  • That the entity from which the shares or participations are acquired meets the following requirements:

    1. That has its social and tax domicile in the Community of Castilla-La Mancha .

    2. That develops an economic activity .

      For these purposes, it will not be considered that it carries out an economic activity when its main activity is the management of movable or real estate assets, in accordance with the provisions of article 4.Eight.Two.a) of Law 19/1991, of June 6, Wealth Tax.

    3. In the event that the investment made corresponds to the constitution of the entity, that said entity has at least one person hired with a full-time employment contract or with two people with a part-time employment contract, provided that the total count of hours in the case of a part-time employment contract is equal to or greater than that established for a person with a full-time employment contract. In any case, workers must be registered in the corresponding Social Security Regime and the conditions of the contract must be maintained for at least 24 months.

    4. In the event that the investment was made through a capital increase of the entity, that said entity had been established within the three years prior to the capital increase and that the average workforce of the entity during the two fiscal years following the expansion is increased with respect to the average workforce it had in the previous twelve months by at least one person with the above requirements, and that said increase is maintained for at least another twenty-four months .

      To calculate the total average workforce of the entity and its increase, the people employed will be taken, in the terms provided by labor legislation, taking into account the contracted day in relation to the full day.

  • The operations that generate the right to deduction must be formalized in a public deed , which must specify the identity of the investors and the amount of the respective investment.

Loss of the right to the deduction made

Failure to comply with the above requirements entails the integration of the deducted amounts into the full autonomous community fee for the year in which the failure occurs, with the corresponding late payment interest.


This deduction will be incompatible, for the same investments, with the deduction “For investment in social economy entities.”

Note: Taxpayers entitled to the deduction must complete the section "Additional information to the regional deduction for investment in the acquisition of shares and social participations as a result of agreements to establish companies or increase capital in commercial companies" 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 must be stated, indicating the total amount of the deduction.