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Practical manual for Income Tax 2023.

Deductions from the full fee

Deduction for investment in companies of new or recent creation

With effect from 1 January 2023, the maximum deduction base is increased from 60,000 to 100,000 euros and the deduction percentage is increased from 30 to 50 percent.

Furthermore, for the application of this deduction to start-ups, referred to in section 1 of article 3 of Law 28/2022, of December 21, on the promotion of the start-up ecosystem, some of the required requirements are eliminated or expanded.

Deductions for incentives and stimuli to business investment in economic activities in direct estimation

General regime and special regimes of deductions for incentives and stimuli to business investment of the Corporate Income Tax Law

  • General deduction system

    Deduction for investments in Spanish film productions and audiovisual series (art. 36.1 LIS ) and deduction for production of certain live shows (art. 36.3 LIS )

    Law 38/2022, of December 27, on the establishment of temporary taxes on energy and credit institutions and financial credit institutions and by which the Temporary Solidarity Tax on Large Fortunes is created, and certain tax regulations are modified ( BOE of December 28) has modified in its Final Provision fifth.Two, with effect for tax periods beginning on or after January 1, 2023, sections 1 and 2 of article 36 of the LIS to increase the limits of the deduction for investments in Spanish and foreign film productions and audiovisual series.

    Specifically, the maximum amount of the deduction is raised from 10 to 20 million euros, except in the case of audiovisual series, for which a new limit of 10 million euros for each episode produced is established.

    Additionally, the limit established for determining the basis of the deduction regulated in section 2 of article 36 of the LIS in relation to the expenses of creative staff is eliminated.

  • Deduction for business contributions to corporate social security systems (art. 38 ter LIS )

    A new deduction of 10% of the total tax is included, linked to employer contributions to corporate social security systems imputed in favour of workers with gross annual salaries of less than 27,000 euros.

    However, if the aforementioned gross annual remuneration is equal to or greater than 27,000 euros, the deduction will be applied to the proportional part of the employer's contributions that correspond to the amount of the gross annual remuneration indicated above. 

    For taxpayers of the IRPF , the Third Additional Provision of Royal Decree-Law 13/2022, of July 26, which establishes a new contribution system for self-employed workers or freelancers and improves protection for cessation of activity ( BOE of July 27), specified that, with effect from January 1, 2023, self-employed persons with employees under their charge may make this deduction under the terms and conditions provided for in article 68.2 of the IRPF Law.

  • Special deduction regimes 

    Support programs for events of exceptional public interest.

    New deductions are included in the business field linked to events of exceptional public interest approved by Law 31/2022, of December 23, on the General State Budget for the year 2023 ( BOE of December 24).

Special tax regime of the Balearic Islands

With effect for tax periods beginning between 1 January 2023 and 31 December 2028, a special tax regime is introduced for the Balearic Islands, which entitles taxpayers of IRPF who carry out economic activities in direct estimation to a deduction of the full quota for net operating income allocated to the investment reserve and a bonus corresponding to the income derived from the sale of tangible assets produced in the Balearic Islands by themselves, typical of agricultural, livestock, industrial and fishing activities. This tax regime includes the following measures:

  • Deduction for contributions to the Reserve for Investments in the Balearic Islands

    The reserve for investments in the Balearic Islands is regulated in very similar terms to the deduction for contributions to the Reserve for Investments in the Canary Islands (provided for in article 27 and in the eleventh Additional Provision of Law 19/1994, of July 6, modifying the Economic and Fiscal Regime of the Canary Islands), but subject, together with the rest of the aid and tax benefits, to the limits set by community law for aid of " minimis ".

  • Deduction for income derived from the sale of tangible assets produced in the Balearic Islands

    With effect for tax periods beginning between 1 January 2023 and 31 December 2028, it is established for taxpayers of IRPF who carry out agricultural, livestock, industrial and fishing activities, in the latter case in relation to catches made in their fishing and aquaculture area, the possibility of applying a bonus of 10% of the full quota corresponding to these income, provided that they determine the income by the direct estimation method, have their residence in the Balearic Islands and meet certain requirements. 

    The bonus will be applied to the part of the full quota that proportionally corresponds to the income derived from the production activities indicated.

These tax benefits (bonus and reserve for investments in the Balearic Islands), together with any other aid received under the regulations on “ minimis ” aid, may not exceed the amounts established by the European Union Regulations for their respective scope of application.

Deductions for donations and other contributions

Donations, donations and contributions for priority patronage activities

Additional Provision fifty-seventh of Law 31/2022, of December 23, on the General State Budget for the year 2023 ( BOE of December 24), establishes for 2023 the activities that are considered priority patronage activities and increases by five percentage points the percentages and limits of the deduction for donations of article 19 of Law 49/2002, of December 23, in relation to these activities.

Deduction for habitual and effective residence on the island of La Palma during the 2023 financial year

Article 67 of the General State Budget Law for 2023 adds a fifty-seventh Additional Provision to the IRPF Law to allow, exclusively in the tax periods 2022 and 2023, taxpayers with habitual and effective residence on the Island of La Palma to apply the deduction provided for residents of Ceuta and Melilla in article 68.4.1 of this IRPF Law.

Deduction for works to improve the energy efficiency of homes

The temporal scope of application of the deduction for works to improve the energy efficiency of homes is extended for another year in accordance with the provisions of Royal Decree-Law 18/2022, of October 18, which approves measures to reinforce the protection of energy consumers and to contribute to the reduction of natural gas consumption in application of the "Plan + security for your energy (+SE)", as well as measures regarding the remuneration of personnel serving in the public sector and the protection of temporary agricultural workers affected by the drought.

Deduction for the acquisition of plug-in electric vehicles and fuel cells and charging points

In order to promote electric mobility and reduce dependence on fossil fuels, article 189 of Royal Decree-Law 5/2023, of June 28 ( BOE of June 29) has modified, with effect from June 30, 2023, the Personal Income Tax Law to establish two new temporary deductions in the state integral rate, which will be applicable until December 31, 2024:

  • Deduction for the purchase of new plug-in electric and fuel cell vehicles.

  • Deduction for the installation of battery charging points for said electric vehicles.

The amount of these deductions, as well as the deduction for works to improve the energy efficiency of homes, falls exclusively on the full state quota.