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R&D tax credit Active

R&D&I tax deduction (Deducción por I+D+i)

One of Europe's most generous R&D tax credits: 25% of R&D expenditure (42% on the amount above the prior two-year average), plus uplifts for dedicated researchers and R&D assets. A monetisation option allows a cash refund at a 20% discount.

3 Jul 2026

Key parameters

R&D rate 25% base; 42% on spend above the 2-year average
Extra deductions +17% qualified-researcher payroll; +8% R&D assets
Innovation (IT) 12% on technological-innovation expenditure
Monetisation Cash refund available with a 20% discount

Eligibility

HQ
Any headquarters country
Local presence
Local tax presence required (branch is sufficient) A branch office (Zweigniederlassung/permanent establishment) of your existing company is enough — you do not need to form a new legal entity such as a GmbH or BV.
R&D substance
Required
Company size
No size restriction
Models
All
Sectors
All
Goals
Additional design site in Europe; Manufacturing / fab site; R&D cooperation without own site; Access to pilot lines & prototyping

Applies to R&D&I performed in Spain (or the EEA under conditions). A binding report (informe motivado) from the ministry gives legal certainty on qualification. Annual limits vs. tax liability apply.

Mechanism & application

Rule-based entitlement — Legal entitlement — self-assessment, no case-by-case funding decision.

Claimed in the corporate income tax return; optional informe motivado (binding report) and monetisation election.

Timeline: Immediate (tax filing); refund via monetisation

Legal basis & sources

Legal basis
Art. 35 & 39 LIS (Ley del Impuesto sobre Sociedades)
Source
https://taxsummaries.pwc.com/spain/corporate/tax-credits-and-incentives
Verification
PwC Tax Summaries / LIS Art. 35 & 39 (25%/42%, +17%/+8%, 12% IT)
from 1 Jan 2006 until no expiry review 1 Jan 2027

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