As released on the Spanish News Site Cotizalia, the Government of Navarra wants to incorporate certain fiscal benefits for entrepreneurs and business angels. New companies younger than five years, with a clear innovator scope, revenues less than €9 Million and have at least 15% of their total expenses dedicated to R+D, will not need to pay certain taxes. These include taxes on; economical activities, transmission of property, the 30% expense on company tax and in addition other fiscal postponements during the fiscal year.
This is the first time that a Spanish autonomous region plans to provide such a fiscal reform that is already somewhat present in other countries’ legislations such as Germany, France, Belgium, Austria and Sweden.
In regards to the business angels that invest in start-ups, they will be able to reduce 20% of the investment from their personal income tax with a maximum of €4,000. The two prerequisites needed for this to happen is that the participation of the individual or his/her family doesn’t exceed 40% and that the exit happens at least after 3 years. It is also important that the business angel doesn’t cover any executive roles, although being on the board of directors is allowed.