The new investment deduction was introduced by Law 28/2022, which amended the Personal Income Tax Law, allowing certain tax advantages to those investors who wish to participate in companies that meet its requirements.
In order to take advantage of this new deduction, investors must take into account the following basic aspects:
- The investment must be made directly in the company, not being valid, for example, investments through investment vehicles or holding companies.
- The deduction will be 50% (previously 30%) on a maximum base of 100,000 euros (previously 60,000 euros) - value of the units or shares subscribed.
- In turn, the company must comply with the following requirements:
- It must have an activity with personal and material means for its development (therefore, investment vehicles or holding companies are not valid).
- It may not be admitted to a regulated market. Its equity may not exceed 400,000 euros.
- The participations or shares must be acquired by the investor during the 5 years following incorporation (or 7 years in the case of an emerging company certified by ENISA), either by participating in the incorporation itself or through a capital increase.
- The participations or shares must remain in the taxpayer's estate for a period of between 3 and 12 years.
- In turn, the participation of the taxpayer (and his family members) may at no time exceed 40% of the capital stock, although this would not apply to the founding partners of a Startup.
If you are an investor and you are interested in deepening the tax aspects of your investment, or if you are an entrepreneur and want to know the tax benefits that the Startups Law can provide to your company, from Busquets we will be happy to advise you on what you need. You can call us at 934 160 004 or contact us through our Linkedin or by sending an email to info@busquets.legal.