Cantabria is introducing new tax measures designed to encourage investment, support business creation and foster the growth of the region’s business sector.
Key developments include increased Personal Income Tax deductions for investments in newly established companies and reduced Property Transfer Tax rates for certain properties intended for business activities.
Below, we explain these incentives in more detail and how you could benefit from them.
Personal Income Tax deductions for investment in new companies
One of the main measures is an increase in the Personal Income Tax (IRPF) deduction for investment in newly established companies, rising from 15% to 30%, with a maximum deduction of €6,000.
A higher deduction will apply to investments in innovative small and medium-sized enterprises (SMEs) or companies in which universities or research institutions hold an ownership stake. In these cases, the deduction may reach 45%, up to a maximum of €9,000.
In addition, the tax deduction intended to offset relocation and living expenses for new residents in Cantabria will be increased. Under certain conditions, it may reach 40%, up to a maximum of €5,000.
Reduced Property Transfer Tax rates for business activities
The measures also introduce new incentives under Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP), aimed at facilitating the acquisition of properties used for business activities.
Compared with the standard rate of 9%, a reduced rate of 7% will apply to the purchase of certain properties intended for productive activities.
Which property investments qualify for the reduced 7% rate?
- Properties located in industrial estates, business parks or technology centres. The business owner must maintain both their business activity and tax domicile in Cantabria for 5 years. They must also increase their workforce and maintain the additional employment for at least 3 years.
- Properties acquired to establish a new business activity in Cantabria. The business activity must be maintained for 5 years, and at least one full-time employee must be hired.
- Properties acquired by recipients of self-employment grants. The reduced rate is intended to encourage entrepreneurship and the development of new business activities.
- Properties included in the transfer of sole proprietorships or professional practices. This measure aims to support the continuity of family businesses and facilitate business succession between generations.
Additional incentives in municipalities at risk of depopulation
The tax measures also take into account the economic development of Cantabria’s rural areas.
Accordingly, the Property Transfer Tax rate will be reduced to 4% for properties located in municipalities officially identified as being at risk of depopulation.
Cantabria: a favourable environment for business investment
These measures aim to strengthen Cantabria’s attractiveness as an investment destination by facilitating the establishment of new business activities, supporting the growth of existing companies and encouraging the development of innovative projects.
At Investin Cantabria, we help you explore the opportunities the region offers to develop your business project. Whether you are considering establishing a company in Cantabria, expanding your operations or making a new investment, contact us to find out how we can help you take the next step.