What the cultural tax incentive is and how it works
Complete guide to the cultural tax deduction: what it is, who can apply it and how the tax-credit deduction works (Art. 39.7 LIS).
The cultural tax incentive lets companies and freelancers with a tax domicile in Spain deduct up to 120% of the amount contributed to certified cultural productions. This guide explains what it is, who can apply it and how it works.
A tax-credit deduction, not an investment
It is a deduction on the tax liability, governed by article 39.7 of the LIS, not a financial-return product.
Who can apply it?
- Companies subject to Corporate Income Tax with a tax domicile in Spain.
- Freelancers taxed under personal income tax (IRPF) on a direct-assessment basis.
- Tax groups filing on a consolidated basis.
How the deduction is calculated
The percentage depends on the contribution bracket and the type of production. This table summarises the most common cases:
| Contribution bracket | Deduction percentage |
|---|---|
| First million euros | 30% |
| Amount above the first million | 25% |
Steps to apply it
- Check that the production holds the ICAA or INAEM certificate.
- Sign the financing agreement before shooting begins.
- Apply the deduction in the corresponding tax return.
“The cultural tax incentive is one of the few deductions that reward you with more than you put in, provided the requirements are met.”
Requirements
What you need to be eligible.
How to apply
The process step by step.
Real cases
Examples of application.
If you want to go deeper, explore the related resources or calculate your specific case with the tool.