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V1297-24 4 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión

Deduction for investment available for newly established companies

A taxpayer asks whether a €20,000 investment in a company founded in 2020 qualifies for the investment deduction. The DGT confirms it is possible provided legal requirements are met and the taxpayer's capital increases.

The question raised

Whether the deduction for investment in newly or recently created companies can be applied to the 2024 Personal Income Tax return.

The DGT's ruling

The deduction for investment in newly or recently created companies allows for the deduction of 50% of the amounts paid for the subscription of shares or participations. The entity must be a limited liability company or a public limited company, not be listed on a stock exchange, carry out economic activity with its own resources, and have equity of less than 400,000 euros. The acquisition must be made within five years following incorporation and the holding cannot exceed 40% of the share capital. Furthermore, it is required that the taxpayer's net worth at the end of the period exceeds that at the beginning by at least the amount of the investment.

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