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Practical Guide to Income Tax 2025. Part 1.

Example: Application of the deduction for investment in companies of new or recent creation

After the closure of the optician's shop where four of its employees worked, they decided to open a new establishment of this type in Zaragoza, for which they formed the public limited company XX in January 2025 with an initial capital of 300,000 euros (300 shares).

Mr. JASM, a resident of Zaragoza (a former customer of the optician's shop that closed), decides to invest in the new business and subscribes in 2025 to a total of 110 shares of the public limited company “XX”:

  • 50 shares in March (50,000 euros)

  • 60 shares in November (60,000 euros)

Determine the amount of the deduction for investment in newly created or recently established companies in 2025, assuming that the requirements for applying it are met.

Solution:

Previous note: Taxpayers residing in the Autonomous Community of Aragon can apply in the 2025 tax year both the state deduction for investment in the acquisition of shares and equity interests of new or recently created entities and the regional deduction. However, according to the regional regulations applicable in the 2025 tax year, the taxpayer can only apply the regional deduction to the amount invested that exceeds the maximum base of the state deduction for investment in the acquisition of shares or equity interests of new or recently created entities provided for in the aforementioned article 68.1 of the Law of IRPFABBR.

Total amount invested in 2025 (50,000 + 60,000) = 110,000

Deduction in the total state quota

  • Investment amount with right to deduction (1) = 100,000

    • Maximum deduction base: 100,000

    • Effective deduction base: 110,000

  • Deduction amount (100,000 x 50%) = 50,000

Deduction in the total regional quota

  • Investment amount with right to deduction (2) = 10,000

  • Deduction amount (10,000 x 20%) (3) = 2,000

Notes to the example:

(1) The amounts invested in 2025 will be eligible for the deduction provided they meet the requirements set out in Article 68.1.1 of the Law IRPFABBR with a maximum deduction base, from January 1, 2023, of the amount of 100,000 euros per year and an applicable percentage of 50%. Please also note that if the shares are held for a minimum of 3 years from the date of investment, their sale or transfer may benefit from the exemption of the capital gains generated provided that the amount obtained is reinvested in shares of new or recently created companies. (Back)

(2) The 10,000 euros of the 110,000 invested in 2025 that exceed the maximum base of the state deduction can serve as the basis for the deduction for investment in the acquisition of shares or equity interests in new or recently created entities established by the Autonomous Community of Aragon in the exercise of its powers, provided that they meet the requirements and conditions demanded. (Back)

(3) In the regional deduction, the applicable deduction percentage is 20% with a maximum amount of 4,000 euros, which in this case is not exceeded. (Back)