If you are considering making a structural contribution to non-profit organizations, the Spanish tax system offers opportunities to do something for society. This applies to both large and smaller contributions. In the world of charity, everything is welcome, and many a little makes a mickle.
Make the difference with your own planning
Everyone can make their own planning for donations, both companies and individuals. Optimal use of the tax options within your own financial situation can be a good start.
If you want to make a bigger difference, you can involve specialized departments of, for example, private bankers. They can help identify personal preferences and make a customized contribution plan.
Everyone should donate the first 150 euros 🙂 This will only cost you 37.50 euros net. If you select a charity that makes you feel happy, you simple put the payment in your agenda every year or you have the amount automatically debited.
Would you like to, but don’t you have a clue what charity to choose? Our own initiative “EuroEconomics Moves & Cares” works together with four different organizations, all four handpicked by our own team. These are their websites:
- www.adcam.es (Masaai Africa)
- www.fpdeseo.org (Little wishes, big dreams)
- www.shareacoffeefor.org (Donate the amount of a single coffee to a charity organization of choice)
- www.cruyff-foundation.org (Sports facilities for children)
Contact these foundations directly or ask us how you can transfer your contributions directly to these charities. We are happy to help you.
How to make a tax-friendly contribution to society?
Individuals, 75% deduction for small donations
In the case of a private tax return – the so-called Impuesto sobre la Renta de las Personas Físicas – you can deduct contributions up to 150 euros by 75% (!). From that amount a deduction of 30% applies and in the case of annually recurring donations it’s 35%. In this case, you must have made donations to the same goal in the previous two years. Please note: the maximum amount of the donation may not exceed 10% of the tax base of the year of the donation.
From the point of view of corporation tax, these are not deductible costs, but in return they entitle you to deduct 35% of the full donation amount and 40% in case of an annual donation to the same goal. Also in this case, you must have made donations to the same goal in the previous two years. To prevent abuse, the maximum amount of the donation may not exceed 10% of the tax base of the year of the donation. If that is the case, the deduction can be spread out over a period of up to ten years.
It goes without saying that the receiving entity must be a charitable or nonprofit organization. Organizations must have a specific certificate for charities. In the case of donations to entities and public benefit organizations not covered by this specific legislation, up to 10% of the donated amounts may be deducted.
Larger amounts and sports sponsorship
If you have the opportunity to make substantial contributions each year, it may be interesting to contact your bank or asset manager. Often they are happy and able to assist you with this.
If you consider linking your contributions to sports sponsorship, EuroEconomics also has its own program for that. Do you want more information? Contact us without any further obligation.
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