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Practical Guide to Income Tax 2025. Part 1.

Requirements for reducing artistic activities

From January 1, 2025, taxpayers who meet each and every one of the following requirements are entitled to this reduction:

  • That you perform one of the following activities:

  • Activities included in groups 851, 852, 853, 861, 862, 864 and 869 of section two and in groups 01, 02, 03 and 05 of section three of the Economic Activities Tax Rates, approved together with the Instruction for their application by Royal Legislative Decree 1175/1990, of September 28, or

  • The provision of professional services which, by its nature, if carried out on behalf of others, would be included in the scope of application of the special employment relationship of artists who carry out their activity in the performing, audiovisual and musical arts, as well as of the people who carry out technical or auxiliary activities necessary for the development of said activity.

  • That No proceed to apply the reduction for income obtained in a notoriously irregular manner of art. 32.1 of the Personal Income Tax Law.

  • That the income for the tax period exceeds 130 percent of the average amount of income net imputed of this nature in the three previous tax periods.

    For the purpose of calculating the average amount of income obtained in the three previous tax periods, all economic activities carried out by the taxpayer must be taken into account, both those carried out individually and those carried out through entities under the income attribution regime.

    The requirements for applying this reduction are mandatory and refer to the taxpayer, so if the taxpayer meets these requirements, they may apply the aforementioned reduction, regardless of whether the income from economic activities derives from their participation in an entity under the income attribution regime.

    For the purposes of calculation of net returns For economic activities to which this reduction applies, as well as those of the three previous tax periods, the following rules will be taken into account:

    • Deductible expenses that are common to other income from economic activities will be prorated proportionally based on the amount of the different gross income from economic activities computed in said fiscal years.

    • If the net return in any of the three previous years was negative, it will be computed as 0 for the purposes of calculating said average.