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V2206-25 17 November 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción por inicio de actividad

Reduction for start of activity capped at €100,000 net income

The DGT confirms that the reduction for start of activity applies only to net income not exceeding €100,000.

The question raised

Whether the reduction for commencement of activity can be applied, given that the net income has exceeded 100,000 euros.

The DGT's ruling

The 20 percent reduction for commencement of activity applies to the positive net income, but the amount of income to which it applies cannot exceed 100,000 euros per year. If the income exceeds that amount, the reduction shall apply only to the first 100,000 euros, and cannot be applied to the excess. In the case presented, the maximum reduction would be 20,000 euros.

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