Tax Advantages

With the aim of promoting investment, employment, competitiveness and economic growth, the Spanish Government and rest of the public administrations have developed a broad and complete system of benefits and incentives with a particular emphasis on the development of permanent employment, research, technological development and innovation.

Companies in Spain, regardless of their activity sector and size, can obtain a tax deduction on part of the costs deriving from their Research and Development (R&D) and Technological Innovation (TI) activities. These incentives consist of a reduction in the corporation tax that the companies must pay, which is a percentage of the profits from the financial year.

This means that the percentage of the tax incentive varies depending on the kind of project (R&D or TI) and on the nature of the expenditure made by the company. For innovation and development projects the percentages range from 30% to 70%.