Skip to main content
Practical manual for Income Tax 2024. Volume 2. Autonomous community deductions
Procesando...

By investment in shares of entities listed in the expanding companies segment of the alternative stock market

Regulations: Art. 5.Eleven Text Consolidated legal provisions of the Autonomous Community of Galicia regarding taxes ceded by the State, approved by Legislative Decree 1/2011, of July 28

Amount and maximum limit of the deduction

  • 15% of the amounts invested during the year in the acquisition of shares as a result of capital increase agreements signed through the expansion companies segment of the alternative stock market, approved by agreement of the Council of Ministers of December 30, 2005.

  • The maximum deduction limit is 4,000 euros.

The total deduction thus calculated will be prorated equally in the year in which the investment is made and in the three following years .

Requirements for applying the deduction

  1. The participation obtained by the taxpayer in the company that is the object of the investment cannot be greater than 10% of its share capital .

  2. The acquired shares must remain in the taxpayer's assets for period of least three years.

  3. The company that is the object of the investment must have its registered office and tax domicile in Galicia and its main activity must not be the management of movable or immovable assets, in accordance with the provisions of article 4.8. Two. a) of Law 19/1991, of June 6, on Wealth Tax.

    The requirements indicated in letters a and c above must be met throughout the maintenance period indicated in letter b, counted from the date of acquisition of the share.

  4. The operations in which the deduction is applicable must be formalized in public deed , in which the identity of the investors and the amount of the respective investment must be specified.

Loss of the right to the deduction made

Failure to comply with the above requirements will result in the loss of the tax benefit.

Incompatibility

This deduction is incompatible , for the same investments , with the application of the regional deductions "For investment in the acquisition of shares or equity interests in new or recently created entities", "For investment in the acquisition of shares or equity interests in new or recently created entities and their financing" and "For investment in companies that carry out agricultural activities".

Note: Once the information required for the calculation has been entered by the taxpayers entitled to the deduction, it will be automatically transferred to the section "Additional information on the regional deduction for Aragon, Galicia, Madrid or Murcia for investments in entities listed on the Alternative Stock Market" in Annex B.9 of the declaration.