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Practical Guide to Income Tax 2025. Part 1.

Example: reduction for income from artistic activities

Doña POR, a content creator specializing in sustainable fashion and "hauls" on a digital platform, manages her channel and social networks and collaborates with eco-friendly brands, organizes fashion events and sells her own fashion guides. For this purpose, she is registered in group 869 of section two of the Tariffs, “Other professionals related to artistic and cultural activities not classified in section three”.

In 2025, she launched an audiovisual series called "24 looks, 24 hours," which she began filming in December 2023 and in which she collaborates with fashion designers, travels to different cities, and documents the entire creative process. The content goes viral and secures exclusive sponsorship deals with major brands, broadcasting rights purchased by a streaming platform, and massive sales of its interactive fashion guide. That year, specifically and as a result of the series premiere, he earned an income of 500,000 euros.

Net returns in previous years were more moderate:

2022: 125,000

2023: 145,000

2024: 105,000

The following expenses are known to be associated with the project:

Subject Cost
Audiovisual production 35,000 euros
Collaborators 40,000 euros
Travel and accommodation 15,000 euros
Promotional campaigns 10,000 euros
Design tools and software 5,000 euros
Other expenses (web design, subtitles, etc.) 5,000 euros
Total spends 110,000 euros

Determine if Ms. POR is entitled to apply the new reduction for income from artistic activities obtained exceptionally in 2025.

 Solution

  • Average of net income in the three previous tax periods: (125,000 + 145,000 + 105,000) /3 = 125,000

  • 130% of the average of the previous net returns is: 130% * 125,000 = 162,500 euros.

  • Deductible expenses in 2025: 110,000

  • Calculation of the net return corresponding to 2025: 500,000 – 110,000 = 390,000 euros.

  • Surplus obtained in 2025: 390,000 – 162,500 = 227,500 euros

 In this case, since 227,500 euros exceeds 150,000 euros, the 150,000 euro limit applies. Therefore, Ms. POR will reduce her net income from economic activities by 30% of 150,000 euros = 45,000 euros.