Tax Incentives for funds themselves:
European long-term investment funds (ELTIF) that meet the established requirements will be taxed at a corporate tax rate of 1%.
Tax Incentives for stakeholders in funds:
With regard to European Long-Term Investment Funds (ELTIF), there is an exemption for Personal Income Tax for reinvestment in the event of a transfer of investments.
More specifically, with regard to European funds for fostering innovation, it states:
- A deduction on tax liability for personal income tax of 15% is established, up to a limit of €750, for amounts paid during the tax period for the purchase of stakeholdings, provided that those amounts are held there for five years.
- Exemption from property tax on the stakeholdings acquired.
And with regard to stakeholdings in European funds for fostering the funding of economic activities and European funds for fostering productive capitalisation, tax exemptions from Property Tax and Inheritance and Gift Tax have been established.