Living together

• The concept of donations and contributions is updated to include contributions in kind.
  Thus, the concept of collaboration agreements is expanded to explicitly include contributions in kind, including the provision of services free of charge. The collaborator will also be able to promote such collaboration.
• The concept of a tax-deductible donation now includes the provision of all types of furniture and real estate.
  This provision of furniture or real estate must be for a specific period of time and without compensation.
• Recognition sponsorship is included.
  This allows the donor to receive symbolic benefits in the form of compensation for goods or services, as long as they do not exceed 15% of the value of the donation, with a maximum of €25,000.
• The modalities of exempt economic activities are extended.
  These must be developed by non-profit organisations in the following areas: development and innovation, the provision of social and professional integration services for people at risk of social exclusion, and education and vocational training linked to high- ability students.
• Automation is encouraged.
  It applies tax exemptions for local tax competences to the assets of non-profit entities.

New Sponsorship Law

Royal Decree-Law amending the law on patronage in Spain

• If you live in an Autonomous Community that is subject to a particular foral regime or that has additional deductions for donations to NGOs, the deductions applied there may be different.
• Remember that in order for us to be able to inform the Tax Office of the amount of your contributions, it is essential that you give us your name and surname, NIF/CIF and address (as they appear on your DNI/CIF).
• In relation to the percentage applicable due to the loyalty of donations in favour of the same entity, article 17/2020 requires that in the two immediately preceding tax periods donations, donations or contributions have been made in favour of the same entity for an equal or higher amount, therefore, in 2020 the amounts donated in 2019 and 2018 must be taken into account, but also those made in 2017 insofar as the rule also requires that in the two immediately preceding tax periods donations have been made in favour of an entity for an amount equal to or higher than that of the previous tax period.

Example
To know if you will have a higher deduction in 2020 you must have donated in 2019, 2018 and 2017, and in each of the years you must have contributed at least the same amount as in the immediately preceding year.

Individuals

You have to complete the information in:

Section “General tax deductions”.

Then “Deductions for donations and other contributions”.

Section H: “Donations to entities regulated in Law 49/2002”.

Legal persons

In code [00565] on page 18 of form 200, the amount of the deduction for donations to non-profit organisations (of the tax system of Title III of Law 49/2002, of 23 December, on the tax system for non-profit organisations and tax incentives for patronage) and other entities benefiting from patronage that is applied in this tax period subject to settlement (*) shall be entered.

(*) Information from form 200 Corporate Income Tax for 2016.