Spanish Tax Loophole: How Investing in Culture Can Earn You a 120% Deduction

Madrid, Spain – A little-known tax incentive in Spain allows individuals and businesses to deduct 120% of their investments in approved cultural projects, potentially turning cultural patronage into a profitable venture. This deduction, outlined in Article 39.7 of the Corporate Tax Law, applies to investments made throughout the year, with the benefits realized during the tax declaration period of the following year. The mechanism effectively means that for every euro invested in eligible cultural initiatives, taxpayers can deduct 1.20 euros from their taxable income. One financial expert, who claims to utilize this deduction annually, shared a personal example: an investment of 15,000 euros resulted in an 18,000 euro deduction, yielding a 3,000 euro net financial gain. This unique opportunity is particularly advantageous for self-employed individuals and companies with significant profits, as it can substantially reduce their tax burden. With the end of the fiscal year approaching, experts are urging potential investors to act swiftly to identify and fund qualifying cultural projects. Several platforms and advisory services are available to guide individuals and companies through the process, ensuring that investments meet the necessary criteria for the 120% deduction. These services often include assistance with contract finalization and ensuring the overall profitability of the fiscal maneuver. The initiative aims to stimulate investment in Spain's cultural sector while offering tangible financial benefits to contributors.

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16 days ago

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Si eres autónomo o empresa debes echar un especial vistazo al artículo 39.7 de la Ley del Impuesto sobre Sociedades (LIS)