7 March, 2018

Spanish Corporate income tax credits for employment creation

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Requirements to apply to Spanish Corporate Income Tax credits for employment creation referred to handicapped people, young people under 30 or unemployed recruited for an indefinite term via the contract for support of entrepreneurship.

At this time of year, most companies are engaged in the closing of their fiscal year and the calculation of their annual corporate income tax expense, taking into account the tax measures that are in force to reduce their tax burden. Among the tax credits aimed at the creation of employment, the following deserve special attention: those referred to handicapped persons with a minimum disability of 33% as well as those for young persons under the age of 30 or for unemployed who are recruited for an indefinite term, through the contract for support of entrepreneurship.

You should be aware of the requirements for these tax credits and ensure you review whether your company can enjoy them in the next fiscal year closing.


✔ Your company can enjoy a tax credit for each person increasing the average employee workforce of recruited handicapped with respect to the average handicapped employees workforce of the immediately preceding fiscal year.

This tax credit is of 9,000.00 € when the employee has a degree of disability equal to or superior to 33% but lower than 65% and of 12,000.00 €, when the degree of disability is equal to or superior to 65%.

It is not necessary that the contracts are indefinite or full – time. It is necessary, though, that the employee is inscribed at the Registry of handicapped employees, demanding a job, not being applicable to employees becoming disabled.

This tax credit is subject to a joint coefficient of the tax quote, together with the rest of tax credits, and can be applied in the 15 years subsequent to that of generation, when there is a shortfall of the tax quote.


✔ Besides, if your company contracts its first employee through an indefinite contract for support of entrepreneurship, who is younger than 30, it will be entitled to deduct from the tax quote the amount of 3,000.00 Euro.

If your company has a workforce lower than 50 employees and recruits unemployed persons who are beneficiary of the unemployment subsidy, under the indefinite contract for support of entrepreneurship, it will be entitled to a tax credit of 50% of the lower of:

  • the unemployment benefit pending to be received by the employee;
  • the amount corresponding to 12 months of the unemployment benefit he was recognised.

This last tax credit is conditional to the increase of the company’s average total workforce and that the recruited employee had received the unemployment benefit during at least three months.


All in all, a set of measures which we welcome but which prove to be inadequate for the purposes for which they have been created.

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