Companies in Spain that sponsor sports talent can save up to 90% of the sponsor amount on their corporation tax! Interesting for both brand awareness and finances, but only suitable for companies with large budgets. We explain how it works and for those interested, we’ll introduce a talent.
Imagine: your company sponsors a talent for an amount of 50,000 euros. That will only cost you 5,000 euros. Note: you still have to spend the 50,000 first. For sponsorship in 2020, the deduction only becomes effective in July 2021.
And there is another limitation. The sponsor amount may not exceed 15% of the total budget for publicity of your company. So if a company spends a total of 200,000 euros on publicity, the sponsor amount would be 30,000 euros (15%) and the deduction would ultimately be 27,000 euros. In other words: the scheme is only suitable for companies with large budgets.
But, even if your company does not spend money on publicity, 45% is still deductible.
Interesting, right? In case you think: I (my company) want to do that! We can help you find a talent.
What about the Spanish super talent Kilian Meyer Prat? At the age of 17, he became Formula 4 sub-champion in his debut season. Next year he will participate in the Formula 3. Kilian is a diabetic and speaks 6 languages. He has experience with sponsor events and television interviews.
A fantastic opportunity.
At Euro Economics we also want to do our bit in the field of sports and charities, but Formula 3 is a step too far for us. So we came up with something else. We offer companies who want to make use of the 90%-rule free information and guidance. Are you interested? Then contact us!
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