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Form 100. Personal Income Tax Return Declaration 2017

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

The 20 per 100 of the amounts invested during the year in the acquisition of shares or corporate participations as a result of agreements to establish companies or increase capital in commercial companies that take the form Company, Limited Liability Company, Labor Limited Company or Labor Limited Liability Company, provided that, in addition to financial capital, they contribute their business or professional knowledge appropriate to the development of the company in which they invest.

DEDUCTION LIMIT :

The deduction may not exceed 4,000 euros per year.

REQUIREMENTS:

  1. That as a consequence of the participation acquired by the taxpayer, computed together with that held in the same entity by his spouse or persons linked to the taxpayer by reason of kinship, in a straight or collateral line, by consanguinity or affinity up to the third degree included, there is no on any day of the calendar year, more than 40 percent of the total share capital of the entity or its voting rights is owned.

  2. That said participation be maintained for a minimum of three years.

  3. That the entity from which the shares or participations are acquired meets the following requirements:

    1. That it has its registered office and tax address in the Community of Madrid.

    2. That develops an economic activity. For these purposes, it will not be considered that it carries out an economic activity when its main activity is the management of movable or real estate assets, in accordance with the provisions of article 4.Eight.Two.a) of Law 19/1991, of 6 of June, of the Wealth Tax.

    3. That, in the case in which the investment made corresponds to the constitution of the entity from the first fiscal year, it has, at least, one person hired with a full-time employment contract and registered in the General Security Regime Social.

    4. That, in the case in which the investment made corresponds to a capital increase of the entity, said entity had been established within the three years prior to the capital increase and that the average staff of the entity during the two subsequent fiscal years of the extension is increased with respect to the average staff that had in the previous twelve months by at least one person with the previous requirements, and said increase is maintained for at least another twenty-four months.

      To calculate the total average workforce of the entity and its increase, the people employed will be taken, in the terms provided by labor legislation, taking into account the contracted day in relation to the full day.

Completion: A data capture window will open in Annex B6, in which you must indicate the amount paid with the right to deduction. The program will transfer the amount from Annex B6.