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V0794-22 ·11 April 2022 ·consulta-vinculante Medium impact
Tax

Tax deduction for investment in startups requires subscription of shares or holdings, even via credit contribution in capital increases

A query was raised regarding whether investing in a startup through convertible notes or participating loans qualifies for Personal Income Tax (IRPF) deductions. The Directorate General for Taxes (DGT) ruled that financing through loans does not entitle the investor to the deduction, unless such credit is contributed as part of a capital increase.

In 6 key points

How it affects those involved

Investors seeking tax relief for startup investments must ensure their capital is formalised through the subscription of shares or holdings, rather than through simple loan agreements, to meet the legal requirements for the deduction.

Lifecycle

2022-04-11PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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