Tax benefits and deductions that interest you

Tax benefits and deductions


  • Learn about some tax benefits and deductions that interest you if you are self-employed or a company in Madrid


Knowing the tax benefits and deductions available can help you achieve survival as self-employed workers and as companies. Many are unaware of the opportunities that exist to reduce their tax burden and achieve greater profitability on investments made during the year.

Deductions for research and development (R&D)

One of the most effective ways to drive innovation and growth in your company is through investment in research and development (R&D). In Spain, companies can deduct up to 25 % of expenses on R&D activities and up to 42 % if they are considered priority research and technological development activities. These deductions can cover a significant portion of the costs associated with research and development of new products or services.

Deductions for investment in technology and equipment

Technology plays a crucial role in the competitiveness and efficiency of any company today. In Spain, companies can deduct up to 12 % of expenses in the acquisition of technological equipment, software either hardware to improve your operations.

Deductions for donations to NGOs and other social organizations

In addition to contributing to the well-being of the community, they can offer tax benefits through donations to non-governmental organizations (NGOs) and charities. These deductions They vary from 10 % of donations to 20 % of membership in professional associations.

Madrid's community

In the Community of Madrid there is a series of tax benefits and deductions in corporate tax that can be used by freelancers and companies. Some of the most notable are:

  • Deductions for job creation

If you are under 35 years old and begin exercising your business or professional activity, you can apply a deduction of 1,031 euros in personal income tax that year. This requires that the exercise of economic activity be continued for at least one year.

  • Deduction for investment in newly or recently created entities

If you live in the Community of Madrid, you can apply a personal income tax deduction for amounts invested in shares or participations in new or recently created companies. The investment deduction percentage is 40 % and the limit is 9,279 euros per year. The deduction will be 50 % of the amounts invested, with a limit of 12,372.00 euros, in the case of companies created or owned by universities or research centers.

Remember that it is important to know and take advantage of the tax benefits and deductions available in each of the tax return campaigns, since it can make a big difference between your company's income and investment expenses.


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