By investment in the acquisition of shares or social participations in new or recently created entities

Regulations: Art. 4.One.z), Sixth and Sixteenth Additional Provision Law 13/1997, of December 23, regulating the autonomous section of the Personal Income Tax and other transferred taxes, of the Valencian Community

A. In general

Amount and limit of the deduction

• 30 percent of the amounts invested during the year in the subscription and payment of shares or corporate interests as a result of agreements to establish or increase the capital of public limited companies, limited liability companies and employee-owned companies or of voluntary or obligatory contributions made by partners to cooperative societies.

• Limit . The amount of the deduction may not exceed 6,600 euros , both in individual taxation and in joint taxation.

  Note: The limits of 6,600 euros (in general) and 15,000 or 9,900 euros (for the additional increase in the deduction for certain circumstances examined in section 2) are independent among themselves when they fall upon different investments.

Requirements and other conditions for the application of the deduction

• must not be shares or interests in an entity through which the same activity is carried out was previously carried out through another ownership.

• The entity in which the investment is to be made must meet the following requirements:

  1. To have the registered office and tax domicile in the Valencian Community and maintain it during the three years following the establishment or expansion.

  2. Exercise an economic activity during the three years following the establishment or expansion.

     For this purpose, the 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 the Wealth Tax.

  3. To have, at a minimum, one person employed under a full-time work contract, registered in the general Social Security scheme during the three years later to the constitution or expansion.

  4. If the investment had been made through a capital increase or new contributions, The company must have been incorporated:

     • In general : in the five years prior to the date of this extension.

     • In the case of emerging companies in biotechnology, energy, industrial and other strategic sectors or those that have developed their own technology, designed entirely in Spain, as referred to in section 1 of article 3 of Law 28/2022, of December 21, on the promotion of the ecosystem of emerging companies, in the seven years following said constitution.

     Attention : In the case of taxpayers who died before December 30, 2025, the company must have been incorporated, in any case, in the three previous years as of the date of the capital increase.

     Provided, in addition, during the twenty-four months following the start date of the corporate income tax period in which the investment was made, their average staff increases by at least one person with respect to the average staff existing in the previous twelve months and that this increase would be maintained for an additional period of another twenty-four months.

     To calculate the company's total average workforce and its increase, the number of people employed will be taken into account, in accordance with the terms established by labour legislation, taking into account the contracted working hours in relation to the full working day.

  The requirements contained in numbers 3 and 4 will not be required for labor societies or for worker cooperative societies.

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

  However, in the case of cooperative societies and except in the cases of constitution, it will not be necessary to formalize in a public deed, the subscription and disbursement of the mandatory or voluntary contributions to the share capital made by the members must be justified by a certificate signed by the person holding the secretary of the cooperative, with the approval of the president of the same and with the signatures notarized.

  Legitimation will not be necessary if the certification is digitally signed using a qualified trust service as provided for in Regulation (EU) 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market.

  Attention : Legitimation will be necessary, in any case, in the event of taxpayers who died before December 30, 2025.

  When the same member has made several subscriptions or payments during the year, it will be sufficient to issue a single certificate, which includes all the subscription and payment dates.

• The acquired shares must remain in the taxpayer's assets for minimum period of years following the incorporation or expansion.

• Furthermore, the application of the deduction is conditional on the delivery of the monetary amounts derived from the act or legal transaction that gives the right to its application being made by credit or debit card, bank transfer, personal check or deposit into accounts in credit institutions .

B. Additional increase in the deduction for certain circumstances

• The deduction may be increased by an additional 15% , when, in addition to meeting the above requirements, the entities receiving funds meet any of the following conditions:

  1. They must prove to be innovative small and medium-sized companies for the purposes of Royal Decree 475/2014, of June 13 , on bonuses in Social Security contributions for research staff, or be owned by universities or research organizations.

  2. Have your tax domicile in some municipality at risk of depopulation .

     Municipalities at risk of depopulation

     For a municipality to be considered at risk of depopulation must be a beneficiary of the Municipal Cooperation Fund for the fight against depopulation of municipalities of the Valencian Community in the budget year in which the tax accrues, or in the previous one, by complying with the requirements established in Law 5/2023, of April 13, comprehensive measures against depopulation and for territorial equity in the Valencian Community.

     Municipalities benefiting from the Municipal Cooperation Fund for the fight against depopulation in municipalities in the Valencian Community

     The municipalities that benefit from the municipal cooperation fund are indicated in the annex to the resolutions that the Presidency of the Generalitat agrees annually by which the specific line of the Municipal Cooperation Fund for the Fight against Depopulation of the Municipalities of the Valencian Community is assigned.

     For the campaign of IRPFABBR For the year 2025, taxpayers residing in the municipalities listed in any of the links indicated at the end of this section may be eligible for the deduction.

  3. They are classified as Emerging Companies of the Valencian Community.

     Note: condition c. The above will not apply in the case of taxpayers who died before December 30, 2025.

• He maximum limit The deduction in these cases is 15,000 euros, both in individual and joint taxation.

  Note: In the case of taxpayers who died before December 30, 2025, the maximum limit mentioned above will be 9,900 euros in individual taxation.

Note: The limits of 6,600 euros (in general) and 15,000 or 9,900 euros (for the additional increase of the deduction for certain circumstances) are independent of each other when they apply to different investments.

C. Amount of the deduction not applied in the year due to insufficient quota

In the event that the taxpayer does not have sufficient regional tax to apply all or part of this deduction in the period in which the right to its application is generated, the amount not deducted may be applied in the following three tax periods until its total amount is exhausted, if applicable.

It is up to the taxpayer to determine the order in which amounts pending deduction from previous years are to be applied.

In the event that there are amounts entitled to deduction that have been generated in the fiscal year and amounts pending deduction from previous fiscal years, the amounts from previous fiscal years will have priority in their application. 

Incompatibility

This deduction is incompatible with the application of the regional deduction "For contributions to the equity of entities that carry out economic activities" (intended for taxpayers affected by the floods caused by the DANA of October 2024) with respect to the same entity receiving the contributions.

Consequently, the taxpayer may not make contributions in the same tax period directed to the same entity entitle the taxpayer to apply both deductions , whether they correspond to the same amounts or to different ones. This does not prevent one of the deductions from being applied in the same period for contributions made during the fiscal year and the other deduction for contributions to the same entity made in previous periods.

Additionally, and given that the incompatibility is established with respect to the same taxpayer , in the case of joint taxation, each of the spouses may apply a different deduction for contributions to the same entity.

Note: Taxpayers entitled to the deduction must state the amount generated in the year, the amount applied in the same year and the amount pending application that can be deducted in the following three tax periods. Once the information necessary for calculating the deduction generated in the year has been entered, it will be automatically transferred to the section "Additional information on the regional deduction for investment in the acquisition of shares and equity interests in new or recently created entities in Andalusia, Aragon, Balearic Islands, Canary Islands, Cantabria, Castile and León, Castile-La Mancha, Catalonia, Extremadura, Galicia, Madrid, Murcia and the Valencian Community" of Annex B.11 of the declaration.