Purpose, maximum base and percentage of the deduction

Object of the deduction

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

For the purposes of this deduction, a valid investment that allows the deduction to be enjoyed by someone who, in a capital increase of a newly or recently created company, contributes a credit that he has against it, may be considered to be a valid investment , provided that the other requirements demanded by article 68.1 of the Income Tax Law are met. See in this regard the Resolution of the TEAC of June 1, 2020. Claim number 00/06580/2019 , filed in an appeal for the unification of criteria.

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

Deduction base and maximum amount

The maximum deduction base is, from January 1, 2023, 100,000 euros per year and is formed by the acquisition value of the subscribed shares or participations.

Amounts paid for the subscription of shares or interests that are 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 form part of the deduction base when, with respect to such amounts, the taxpayer applies a deduction established by the Autonomous Community in the exercise of its powers.

Furthermore, when the taxpayer transfers shares or interests and chooses to apply the exemption for reinvestment regulated in article 38.2 of the the part of the reinvestment that exceeds the total amount obtained from the transfer of the shares or interests will form part of the deduction base corresponding to the new shares or interests subscribed  

In no case can a deduction be made for new shares or participations as long as the amounts invested do not exceed the aforementioned amount of 100,000 euros per year.

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

Percentage of deduction

The deduction percentage applicable to the amounts paid in the year for the subscription of shares or interests in newly or recently created companies, in the terms previously mentioned, from January 1, 2023 is 50 percent .

Note: With effect from 1 January 2023, the maximum base for this deduction has been raised from €60,000 to €100,000 per year, and the deduction percentage of the amounts paid has been raised from 30% to 50%. In addition, certain requirements for the application of this deduction to emerging companies have been expanded and eliminated, as listed in the following section.