The main incentive programmes available in Catalonia provide companies with grants and funding for R&D and innovation, training, hiring, energy and environment and fixed assets investments. Apart from these programmes, there are other incentives for export activities at Catalonia Commercial Promotion Consortium (Consorci de Promoció Comercial de Catalunya, COPCA). More details in the areas of raising environmental awareness and energy efficiency, are available at Catalan Energy Institute (Institut Català d'Energia, ICAEN) and at the Environment Department (Departament de Medi Ambient i Habitatge).
Subsidies for occupational training of unemployed people, "Forma i Contracta" Program (applications until 15/10/2008).
Incentives to R&D investment projects (applications from 26/03/2008 to 9/05/2008 and from 12/05/2008 to 15/07/2008).
Catalonia Investment Agency incentives for investments in fixed assets (applications from 2/06/2008 to 30/06/2008).
Catalonia Investment Agency incentives for job creation through the incorporation of new activities (applications from 1/04/2008 to 28/04/2008, from 1/07/2008 to 28/07/2008 and from 1/11/2008 to 28/11/2008).
Catalonia Investment Agency incentives to promote supraregional headquarters projects (applications from 1/04/2008 to 28/04/2008 and from 1/07/2008 to 28/07/2008).
InnoEmpresa Program, incentives to SMEs innovation projects 2008 (applications from 26/03/2008 to 23/05/2008).
Furthermore, tax allowances regime for research, development and technological innovation are among the best in the world. This Spanish tax framework for RDI is acknowledged by the European Union of Industrial and Employer's Confederation (UNICE) as being the best among OECD countries.
Research and Development activities, 2007
Technological Innovation activities, 2007
These percentages of deductions would be reduced from 2008 on to the following: 25% for R+D costs (exceptionally up to 42%); additional 17% of employees and outsourcing costs; 8% on investments in fixed assets; 12% for innovation projects outsourced to universities or innovation centres and 8% for the rest of technological innovation deductions.
These allowances may be applied by businesses carrying out R&D tasks for foreign companies which are not permanently established in Spain. In such a case, the Spanish business can include as R&D expenditure any expenditure associated with R&D projects commissioned by foreign companies. Also, subsidiaries of multinationals established in Spain which carry out R&D activities from Spain for group entities abroad may apply for tax allowances for RDI activities in relation to expenditure made abroad for up to 25% of the total amount invested in the project, provided the main part is carried out in Spain.
Spain also has one of the most favourable tax regimes for holding companies (ETVE) in the world. This regime is basically intended for those international groups which wish to have a centre from which to manage their holdings in several countries. The only requirements are the incorporation of a company in Spain and the provision of securities from the companies in which the ETVE has a holding (provided they represent a minimum holding of 5% or less but with a cost of more than €6m, and provided the companies in which it has a holding conduct business). Thanks to this privileged tax regime, an ETVE with the above characteristics does not have to pay tax on dividends received from non-resident companies in which it has a holding and its members do not have to pay on the sums distributed by the ETVE.
Updated 8/4/2008
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