2. Deductible concepts and basis of deduction

Regulations: See arts. 17 and 18 of Law 49/2002, of December 23, on the tax regime of non-profit entities and tax incentives for patronage

Donations, gifts, and contributions of an irrevocable, pure and simple nature will be eligible for deduction, that is, those that do not represent a present or future consideration for a good or service for the donor. According to the above, the types of donations that entitle to the deduction and the basis thereof are the following:

• Monetary donations . The basis for the deduction is the amount of the donation.

• Donations or gifts of goods or rights. The basis for the deduction will be the book value of the aforementioned assets or rights at the time of their transfer and, failing that, the value determined in accordance with the rules of the Wealth Tax.

• Membership fees to associations other than political parties that do not correspond to the right to receive a present or future benefit. The basis for the deduction is the amount of the installments.

• Constitution of the real right of usufruct over goods, rights or securities, carried out without compensation. In these cases, the deduction base will consist of:

  1. Usufruct over real estate. 2% of the cadastral value of the property for each year of duration of the usufruct, determined proportionally to the number of days corresponding to each tax period.

  2. Usufruct over securities. The annual amount of dividends or interest received by the usufructuary in each of the tax periods of duration of the usufruct.

  3. Usufruct over other assets or rights. The annual amount resulting from applying the legal interest on money in each financial year to the value of the usufruct at the time of its creation in accordance with the regulations of the Tax on Property Transfers and Documented Legal Acts.

• Donations or gifts of goods that form part of the Spanish Historical Heritage or of cultural assets of guaranteed quality . In both cases, the basis for the deduction will be the assessment carried out for this purpose by the Qualification, Valuation and Export Board.

• As of January 1, 2024, the transfer of use of a movable or immovable property , for a specified period, carried out without consideration .

  The deduction base will consist of the amount of expenses incurred by the transferor in relation to such assets during the transfer period, provided that they were considered tax-deductible expenses if they were transferred for consideration and are duly accounted for when the transferor is required to keep accounting records in accordance with the Commercial Code or equivalent legislation.

  In no case will taxes or interest on foreign capital invested in the acquisition or improvement of the property and other financing costs form part of the basis for the deduction.

The value determined in accordance with the above rules has as its maximum limit the normal market value of the asset or right transferred at the time of its transfer.

Note: Article 23.1 of Law 49/2002 states that capital gains and positive income arising from donations, gifts and contributions referred to in Article 17 of the same Law will be exempt from the Personal Income Tax that taxes the income of the donor or contributor.