In Barcelona, as in the rest of Spain, taxpayers can benefit from a personal income tax deduction for investment in new businesses.
This deduction is designed to encourage investment in start-ups and new companies, favouring the growth of the business fabric.
This article is of interest to you if…
- You want to deduct income tax for investing in new companies in Barcelona.
- You are looking to take advantage of state and regional tax benefits.
- You want to support innovative startups and the entrepreneurial ecosystem.
- It is in your interest to comply with requirements to maximise the deduction.
- You prefer specialised advice to optimise your investment.
The requirements and benefits of this deduction, based on both state and regional regulations, are detailed below.
State deduction for investment in new companies
At the national level, taxpayers who invest in new or recently created companies can deduct up to 30% of the amounts invested, with a maximum base of 60,000 euros per tax period. This deduction is applicable in the personal income tax return.
General requirements:
- Direct investment: The investment must be made through the acquisition of shares or equity in the company.
- Newly established company: The investee company must be newly incorporated, i.e. it cannot be more than three years old since its creation at the time of investment.
- Permanence of the investment: The investor must maintain the investment for a minimum of three years and a maximum of 12 years to benefit from the deduction.
- Shareholding: The investor’s shareholding, together with that of his or her spouse or relatives, may not exceed 40% of the company’s share capital.
The deduction aims to incentivise the participation of investors in the creation of innovative and start-up companies, thus contributing to the development of the entrepreneurial ecosystem.
Autonomous deduction in Catalonia
In addition to the state deduction, Catalonia offers additional tax incentives through the autonomous community’s personal income tax (IRPF). This deduction is available to residents in Catalonia, as is the case in Barcelona.
Specific requirements in Catalonia:
- 30% deduction: Similar to the state deduction, Catalonia also allows a deduction of 30% of the investment.
- Maximum base: The base of the deduction in Catalonia may vary, but it is limited to the percentage of investment established by the regional regulations.
- Technological or innovative companies: Investments in companies that are focused on innovation and technological development are favoured.
Tax benefits and practical example
A taxpayer resident in Barcelona who makes an investment of 50,000 euros in a start-up company could benefit from a deduction of 15,000 euros (30%) on his or her state income tax return, and possibly additional deductions if he or she meets the specific requirements of the Catalan regional regulations.
Additional advantages of the deduction
In addition to the direct reduction in the full amount of personal income tax, this incentive has other advantages, such as:
- Encouraging investment in startups: Allows investors to invest in new ideas and projects with reduced risk.
- Access to an innovative ecosystem: Investors not only benefit fiscally, but can also participate in the growth of technology and disruptive companies.
- Long-term liquidity: As investments must be held for a minimum of three years, investors contribute to the sustainable development of the company.
Recommendations
In order to optimise this deduction, it is important to have specialised advice that allows you to comply with all state and regional requirements, and to avoid errors that may result in the loss of the tax benefit.
The deduction for investment in start-ups is an excellent opportunity for those seeking to support entrepreneurship and at the same time optimise their tax return.
Moreover, this benefit not only favours the investor, but also boosts the growth of the entrepreneurial ecosystem in Barcelona and throughout Catalonia.
