Doctrine by topic · DGT Observatory
How the DGT's position on this topic has evolved, and the rulings it rests on.
Current position
For the application of the deduction under Article 68.1 of the LIRPF (Personal Income Tax Law), the entity must take the form of a Public Limited Company (Sociedad Anónima), Limited Liability Company (Sociedad de Responsabilidad Limitada), Worker-Owned Public Limited Company (Sociedad Anónima Laboral), or Worker-Owned Limited Liability Company (Sociedad de Responsabilidad Limitada Laboral). The direct or indirect participation of the taxpayer, including spouse and relatives up to the second degree, must not exceed 40 percent of the share capital or voting rights.
The DGT's position remains constant regarding the legal nature of the public limited company. It is confirmed that its commercial character and profit-making purpose prevent access to tax exemption regimes for non-profit entities or public law entities. Regarding deductions for natural persons, the requirement for a specific commercial legal form is maintained.
Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.