The Tax Lease · tax investment simulation
Calculate your tax reduction.
Spain allows any taxpayer to turn their tax debt into an investment in innovation. By contributing capital to a certified R&D&I project, they generate a tax credit that, in the most favourable profile, reaches 126% of the contribution with what the law alone provides. It can go further when private capital enters the project, for the reason explained below. In practice, a taxpayer can direct 100% of their tax liability (or more, if it suits them) to financing the project. With that they settle their tax obligation for the year, and within a maximum of one year they also receive a tax credit that reduces their burden in the following years (art. 35 of the Corporate Income Tax Act; in the Canary Islands, increased by the Economic and Fiscal Regime, art. 94 of Act 20/1991).
This simulator is for the tax investor: whoever contributes capital to the AIE and recovers through their taxes. If your profile is that of the private investor (coming into the startup with a convertible note), your door is capital to invest and your tool the private simulation. The tax investor must be a Spanish tax resident; if you are not yet, we can advise you on becoming one: relocation.
How to read it
Not only a reduction of your tax burden.
Are you interested only in reducing your tax burden, or also in taking a stake in a startup that could rise in value over time? With Volcano you choose: obtain only the tax credit, obtain only the stake in the startup, or a combination of both, and you decide in exactly what proportion.
Depending on whether you are an individual or a company, on your residence and on your taxable base, the law allows you to obtain a tax credit that may fall below or above 100% of your tax liability. If it falls below, Volcano can increase it by contributing its own capital or that of other private investors, to help you reach a credit greater than your tax parameters would allow on their own. If it falls above 100%, you can also increase it by drawing on that same private capital.
You can also allocate part of your tax credit to obtain a stake in the startup that develops the project. It is a position whose value depends on how the company evolves: it can generate income in an eventual exit or, later on, through dividends. And it is always subject to the risk inherent in investing in an early-stage startup.
Your case
Let us calculate the numbers of your tax saving.
Four pieces of data and one objective: with those the simulator tells you how much of your liability you would free up, what tax credit you would generate and what stake you would be entitled to in the startup. Nothing is sent to any server: the calculation happens in your browser as you type, and you can copy a link with your data to show it to your adviser.
If you do not know one of the figures precisely, put an approximation: the aim is to see the order of magnitude, not to close a deal. The simulator warns you when something does not fit, when the objective goes past the prudence threshold and when your liability is not enough to absorb the whole deduction in the first year.
Your data
What you are going to invest in the project.
The link reopens this simulation with the same data, so that you can send it to your adviser. The figures travel only in the link itself: they are not sent to any server nor stored here. If your browser does not allow automatic copying, the link appears in a window for you to copy by hand.
How the advantage widens above your natural level → Below your natural level, you give up part of your tax capacity to other partners in the AIE who need more than their own numbers allow, and you receive in exchange a larger stake in the startup. Above it, the opposite happens: the difference up to your objective must be funded by a third party, without this involving any debt or obligation for you. The specific transfer is structured and agreed in the video call, it is not automatic just from moving the slider.
Your result
- Fill in the data to calculate
See the full breakdown
No commitment: your numbers are attached to the three-minute qualification, so that we can study your case, contact you and propose the right arrangement.
Indicative and conservative estimate: calculated as if all the expenditure were technological innovation (iT), the lower of the two deductions that exist. If the Ministry's reasoned report classifies part of the project as I+D (the higher deduction), your real recovery can only improve on this figure. It does not constitute tax, legal or investment advice: the exact values of your case are reviewed in the video call, after qualification.
The choice
Why prefer a stake instead of more credit?
A tax investor may ask for less credit than they would be entitled to. In doing so, they cede part of their tax capacity to other partners of the AIE and receive in return a larger stake in the startup. That stake is calculated with the same valuation, fixed on day one, that governs the convertible note of the private investor.
The tax credit is a certain benefit, quantifiable in advance and with the classification shielded by the binding reasoned report: you know exactly how much you will receive, and when. The stake is the opposite: there is no guaranteed figure, but there is also no ceiling. If the startup succeeds, what you can obtain from your stake has no limit set in advance, unlike the tax credit, which does.
The numbers are yours. The next step is short.
A three-minute qualification confirms your case and proposes the right next step.
John F. Kennedy, 1962