Patent box
What special features does Patent Box have in the Basque Country?
The intangible Intellectual Property assets to which this tax reduction applies are those that are eligible for registration, i.e., patents, utility models, designs, and trademarks.
- There is no limit on the tax reduction.
- Intangible assets may have been created or acquired.
- A 60% discount is applied to gross income obtained from the exploitation of created intangible assets and a 30% discount to acquired assets.
Is this tax incentive compatible with R&D&I tax deductions?
Yes, it is compatible with other R&D&I tax deductions.
Is there a limit to this tax reduction?
When the income generated from the transfer of use is six times the cost of the asset created, the tax savings no longer apply.
What are the main requirements to benefit from the tax advantage?
The company that creates the intangible asset transfers it to the transferee entity, which must use it in its economic activity and not be a resident of a tax haven. A contractual specification and separate accounting records are required to determine the income and expenses generated by the transferred asset.
Which intangible assets are not subject to tax savings?
Trademarks, literary, artistic, or scientific works, personal rights that can be transferred, such as image rights, computer programs, industrial, commercial, or scientific equipment.
Which intangible assets are transferable?
Patents, designs or models, plans, formulas, know-how.
Who can benefit from this tax incentive?
Any entity subject to corporate income tax in Spain that creates and exploits certain intangible assets of intellectual property.
What is Patent Box?
It is a tax incentive that allows a 50% reduction in the tax base of income from the transfer of use or exploitation of certain intangible Intellectual Property assets.