Tax credit for donations to NGOs and Public Interest Foundations

250 implies a deduction of 80 %

By Decree Law 6/2023 of 19 December, which updates the Patronage Law, private donations are increased to 250 € with a deduction in the income tax return of 80 %. 

That is, by donating 20.84 €/month, or 250 €/year, Hacienda will give you back 200 € in your taxes. 

For a cost of only 50 € per year you can help beneficiary students (seminarians and diocesan priests and religious men and women) to continue their formation, thus achieving that no vocation be lost.

Select between monthly or annual donation to calculate the tax deduction

Personal income taxpayers shall be entitled to deduct from the gross tax liability the result of applying the following scale to the deduction base corresponding to all donations, gifts and contributions with the right to deduction, determined in accordance with the provisions of Article 18 of this Law:

Deduction basis Amount up to 250 euros. Deduction percentage: 80 %
Remaining deduction base. Percentage of deduction: 40 %

If in the two immediately preceding tax periods donations, gifts or contributions with the right to deduction had been made in favor of the same entity, being the amount of the donation, gift or contribution of this year and that of the preceding tax period, equal or higher, in each of them, than that of the immediately preceding year, the percentage of deduction applicable to the deduction base in favor of the same entity exceeding 250 euros, will be 45 percent.

The basis of this deduction will be computed for the purposes of the limit provided for in paragraph 1 of Article 69 of Law 35/2006, of November 28, 2006, on Personal Income Tax and partial amendment of the Corporate Income Tax, Non-Resident Income Tax and Wealth Tax Laws.

1. Corporate income taxpayers shall be entitled to deduct from the gross tax liability, less the deductions and allowances provided for in Chapters II, III and IV of Title VI of Law 43/1995, of December 27, 1995, on Corporate Income Tax, 40 % of the deduction base determined in accordance with the provisions of Article 18. The amounts corresponding to the tax period not deducted may be applied in the settlements of the tax periods ending in the 10 years immediately following and thereafter.

If in the two immediately preceding tax periods donations, gifts or contributions with the right to deduction have been made in favor of the same entity, being the amount of the donation, gift or contribution of this tax period and that of the preceding tax period, for an amount equal to or greater, in each of them, than that of the immediately preceding tax period, the deduction percentage applicable to the deduction base in favor of the same entity will be 50 %.

2. The base of this deduction may not exceed 15 % of the taxable income of the tax period. Amounts in excess of this limit may be applied in the tax periods ending in the ten years immediately following and thereafter.