People who invest in newly created companies may deduct 30% of the amounts invested up to a limit of 60,000 euros per year
There is no doubt that the entrepreneurial ecosystem is a booming sector, so investing in newly created companies can become a powerful engine to stimulate our economy. Precisely in order to encourage investors to allocate part of their assets to incipient business projects, the State has provided a series of tax benefits. From January 1, 2018, people who invest in newly created companies can deduct 30% of the amounts invested up to a limit of 60,000 euros per year, that is, from this year, investors can deduct up to a maximum of 18,000 euros per year in your income statement (Law 6/2018).
Requirements for investors In order for tax benefits to be applied, a series of requirements must be met by the investor and by the invested company.
In relation to the investor:
Requirements that are required of the startup in which it is invested:
Other conditions Tax benefits may not be applied in the following cases:
Likewise, another tax incentive must be taken into consideration in personal income tax: the exemption in the reinvestment of the profits from the transfer of shares or participations in startups to which the deduction provided for in article 68.1 of the Personal Income Tax Law had been applied. . This implies that the capital gains obtained as a result of the transfer of the acquired shares on which the 20% deduction in personal income tax would have been applied, are excluded from tax, when the amount is reinvested in the entrepreneurial ecosystem. Required documentation In order for the investor to be able to enjoy the aforementioned deduction, it will be necessary to obtain a certification issued by the startup whose shares have been acquired, in which it must be indicated that the indicated requirements have been met. Simultaneously, the startup in which the investment has been made must submit to the State Tax Administration Agency, electronically, form 165 relating to the informative declaration of individual certifications issued to partners or participants of newly or recently created entities, a presentation that must be carried out in the month of January of each year in relation to the subscription of shares in the immediately preceding year.
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