Through donations, transfers of use or loan contracts and business collaboration agreements, relating to cultural, scientific and technological development patronage and cultural consumption

Regulations: Art. 5 bis Revised Text of the Legal Provisions of the Autonomous Community of the Balearic Islands on Taxes Transferred by the State, approved by Legislative Decree 1/2014, of June 6

Amount and maximum limit of the deduction

• 15 percent of the amounts in which donations, transfers of use or loan contracts are valued, and of the amounts paid under business collaboration agreements made in accordance with the provisions of Law 3/2015, of March 23, which regulates cultural consumption and cultural, scientific and technological development patronage , and establishes tax measures.

  In this case, the limit of the applicable deduction is 660 euros per year , both in individual and joint taxation.

  The limit of 660 euros per year is unique and global for all donations, transfers of use or loan contracts, and amounts paid under business collaboration agreements that give the right to the deduction.

  Attention: Please note that for taxpayers who died before 31 December 2022, the maximum amount of this deduction will be 600 euros.

• 25% of the amounts of monetary donations or the value of donations, of transfers of use or loan contracts and of business collaboration agreements referred to in article 3 of the aforementioned Law 3/2015, when:

  1. The beneficiary of the patronage is the Administration of the autonomous community of the Balearic Islands and the autonomous bodies, foundations, public business entities, public commercial companies and the consortia that depend on them referred to in letter b) of article 4.1 of the same Law 3/2015 and

  2. The cultural project or activity that is the object of patronage constitutes a project of the Administration of the autonomous community or its instrumental entities.

  In these cases, the limit of the applicable deduction is 1,200 euros per year , both in individual and joint taxation.

Requirements and other conditions for the application of the deduction

• In the event that the transfer of use or the loan agreement has a duration of less than one year , it must be prorated based on the following criteria

  1. In the case of transfers of use or loan contracts of less than one year, in accordance with the provisions of article 11 of Law 3/2015, of March 23, which regulates cultural consumption and cultural, scientific and technological development patronage and establishes tax measures, there is a double apportionment:

     1 From the base the deduction.

     This base will be the annual amount resulting from applying, in each of the tax periods of duration of the transfer of use or loan agreement, 4% to the valuation of the property made by the Historical Heritage Valuation Commission and, if it concerns premises for carrying out scientific or technological development projects or activities, 4% to the cadastral value. In both cases, the base will be determined proportionally to the number of days of duration, in the tax period, of the transfer of use or loan agreement.

     2 On the limit of the deduction.

     The maximum limit (660 or 1,200 euros per year) must be prorated according to the number of days in the annual period.

  2. In the case of tax periods of less than a year as a result of the death of the taxpayer, the apportionment of transfers of use or loan contracts of less than a year must be carried out based on the proportion that represents the duration of the contract with respect to 365 days.

     In another case, that is, in transfers of use or loan contracts that are not less than one year, the deduction does not have to be prorated due to the fact that the taxpayer dies before December 31.

• If the duration of the transfer of use or the loan agreement is greater than one year , the deduction cannot be applied to more than three fiscal years .

• In the case of donations, transfers of use or loan contracts and business collaboration agreements, relating to cultural, scientific and technological development patronage and cultural consumption, to which the deduction of 15 percent is applied it is required that the sum of the general taxable base and the savings of the taxpayer, boxes [0435] and [0460] of the declaration, does not exceed the following amounts:

  • - 33,000 euros in individual taxation.

  • - 52,800 euros in joint taxation.

  Attention: Please note that, as a result of the various modifications that Article 5a has undergone during 2022, we find the following quantitative limits:

  • For taxpayers who died between January 1 and March 30, 2022 , the sum of the general and savings tax bases (boxes [0435] and [0460] ) may not exceed 12,500 euros in individual taxation.

  • For taxpayers who died between March 31 and December 30, 2022 , the sum of the general and savings tax bases (boxes [0435] and [0460] ) may not exceed 13,750 euros in individual taxation.  

  • For the rest of the taxpayers is the amount of the deduction cannot exceed 33,000 euros in the case of individual taxation and 52,800 euros in the case of joint taxation.

  Note: In cases where the 25% deduction is applicable, the limits relating to the taxable base discussed will not be applicable.