State deductions for amounts invested to subscribe for shares or participations in new or recently created companies

The right to the deduction for investment in new or recently created companies made in previous years will be lost, in whole or in part, when any of the requirements set out in article 68.1 of the Personal Income Tax Law are not met. Among other assumptions:

• When the entity becomes admitted to trading on an organized market during the years in which the taxpayer holds the share or participation.

• When the entity does not have the personal and material means for the development of economic activity. In particular, when the entity carries out an activity related to the management of movable or immovable assets referred to in article 4.8.Two.a) of Law 19/1991, of June 6, on the Wealth Tax, in any of the entity's tax periods concluded prior to the transfer of the participation.

• When shares or interests are transferred without having remained in the taxpayer's assets for a period of more than three years and less than twelve years.

• When the direct or indirect participation of the taxpayer, together with that held in the same entity by his/her spouse or any person related to the taxpayer by kinship, in a direct or collateral line, by consanguinity or affinity, up to the second degree included, exceeds, during any day of the calendar years of holding the participation, 40% of the share capital of the entity or its voting rights.

  This requirement is not applicable and, therefore, does not determine the loss of the right from January 1, 2023 when the taxpayer is a founding partner of a start-up company referred to in Law 28/2022, of December 21, on the promotion of the ecosystem of start-ups, understood as those that appear in the public deed of incorporation of the same.

The taxpayer will be obliged to add to the state net quota all the deductions improperly made plus the corresponding late payment interest.