The Royal Decree of December 20, 2024, introduced a new tax deduction regime aimed at encouraging sustainable and socially beneficial investments, effective from January 1, 2025. This system allows companies and self-employed individuals to benefit from a favorable tax reduction on their investments. The deduction is 40% for individuals and small businesses, while it is set at 30% for other companies. In comparison, the basic deduction is much lower, at 10% and 0%, respectively.
To qualify, investments must fall within one of the following four themes:
1. Energy efficiency and renewable energy, including the purchase of new energy-efficient air conditioning systems.
2. Emission-free transportation, such as vehicles for goods transport with zero emissions.
3. Environmental sustainability, such as systems to reduce water consumption and the greening of non-public spaces.
4. Digital support, although the specific details of investments in this area are listed in the Royal Decree.
Eligible assets and exclusions are comprehensively listed in the Royal Decree of December 20, 2024. This tax system applies only to assets acquired or created from January 1, 2025. The main goal is to encourage responsible behavior and ecological innovations while offering significant financial benefits.
Our mission in the field of corporate taxation is to help you manage a reasonable tax burden that aligns with your income and the opportunities provided by tax legislation.
