Lawmakers in PDECat’s Congress of Deputies announced a landmark agreement with the United States regarding a tax reform aimed at patronage donations. The plan, presented as a reform bill, could win broad parliamentary support and be approved next week, according to the party’s spokespersons Ferran Bell and deputy Miquel, who led the negotiations. The core elements were outlined by El Periódico de Catalunya, part of the Prensa Ibérica group.
New measures broaden income tax deductions and corporate tax incentives for individuals and companies that support NGOs, foundations, and other non-profit cultural, sports, and scientific bodies. The reform also extends corporate tax participation for firms or professionals who provide services to nonprofits, with funding allocated through agreed-upon aid amounts. Once signed, these organizations will be eligible for tax relief and self-sacrifice provisions. The package covers consultancy and advisory services, media and advertising contributions, architectural rehabilitation of culturally significant properties, and donations to protected natural areas or culturally important works by renowned authors, among other items.
“Previously, influence often came through cash gifts alone,” explained Miquel. The proposed change aligns Spanish regulation more closely with European models, notably in France and Italy, which helped shape the reform. Under the new framework, an architecture, design, or communications firm could contribute not just money but also professional services to a nonprofit, a notable shift described by supporters as a major victory for reformers.
The reform summary, coordinated with the Ministry of Finance, is set to take effect on January 1, 2024. It also revises crowdfunding rules and deduction rates:
– For individuals, the tax base for donations rises from 150 euros to 250 euros, and the deduction increases from 40% to 80% with a 35% baseline tax credit. Previously capped at smaller amounts, the new structure expands the eligible relief.
– For corporations, the Corporate Tax deduction increases from 35% to 40%. In both cases, a higher incentive applies if the donor has supported the same nonprofit in the previous two years, rising to 45% for individuals and 50% for legal entities.
The reform also introduces a cap on the charitable value of symbolic goods or services, limiting such contributions to no more than 15% of the donation value, with a maximum of 25,000 euros.
Additionally, non-profit organizations will see expanded exemptions for activities that support social and workforce integration, research and development, and education, along with vocational training tied to talented students. The measure also strengthens the process for applying exemptions from local competition taxes to nonprofit assets, ensuring a smoother, more transparent pathway for these entities.
Overall, the reform aims to streamline patronage contributions while expanding the practical benefits for associations and donors alike, with an emphasis on transparency, service provision, and community impact across sectors in both Spain and its international partners. The proposed changes reflect ongoing efforts to modernize tax policy for the nonprofit sector and to encourage broader public and private support for cultural, scientific, and social initiatives.