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Practical manual for Income Tax 2023.

Deduction for investment in companies of new or recent creation

Regulations: Articles 68.1 and Thirty-eighth Additional Provision.2 Law IRPF

The deduction for investment in new or recently created companies is introduced in the IRPF with the aim of encouraging companies, whether new or recently created, to raise equity from taxpayers who, in addition to financial capital, wish to contribute their business or professional knowledge to the development of the company in which they invest (local investor or "business angel"), or also from those taxpayers who are only interested in providing capital (seed capital).

The highlights of this deduction are as follows:

  1. Purpose, maximum base and percentage of the deduction
  2. Requirements and conditions for your application
  3. Deduction limit: verification of the financial situation
  4. Example: Application of the deduction for investment in companies of new or recent creation