STORIES

21 January, 2014

New Spanish Tax Insights for Spanish Business Angels



Share This:



In order to promote gaining financing and know-how by newly created companies, a new tax credit has been recently introduced by Spanish Personal income tax regulations.

In PBS, we want to remind you today of the State tax credit applying to Spanish tax resident individuals. Taxpayers will need to check whether their respective Autonomous Community can offer more advantageous tax relief than the State regulations and choose the best option.

✔ Individuals investing (as of Sept. 29, 2013) in unquoted limited liability companies (such as Sociedad Anónima or Sociedad de Responsabilidad Limitada) can benefit from a 20% tax credit on the amount invested.

✔ The  annual basis for this tax credit is subject to a threshold of 50,000 Euro, which means that maximum tax relief is 10,000 Euro).

✔ Moreover, the investment has to be made in small-sized companies, as their equity cannot exceed 400,000 Euro, at the beginning of the fiscal year in which the acquisition takes place.

✔ There are also limitations that need to be considered in terms of timing (as the investment must have a temporary nature, lasting between three to twelve years), of the activities undertaken by the target entity (it cannot be a mere investment entity) or the percentage of interest, on a stand-alone basis or with certain relatives, that cannot exceed 40%.

New regulations that we hope will motivate not only those directly benefiting from this tax relief but also to companies requiring financing and  talent.

Image: Crowdfundinsider

Share This:

CONTACT

MADRID
Orense 34, planta 8ª 28020.
T+34 91 192 21 22

MAP

BARCELONA
General Mitre 28-30 08017.
T+34 93 363 65 10

MAP

Based in Barcelona and Madrid. Englobally is our Latin American business partner established in Santiago de Chile.

We are also part of Englobally Group, an international association of independent accounting and advisory firms that provide a one-stop shop managed solution for accounting, payroll and HR needs, with member firms in over 25 countries and associates working in many others. Many fast growing technology and lifescience businesses find their international services invaluable. Companies in many other sectors are attracted by the close and supportive way Englobally Group works.

Name

E-mail

Please leave this field empty.

Message

Please type the code below

captcha