Patent Box: a 60% Tax Reduction on Intangible Assets
Cut the tax on patents, software and intangible assets by 60% under Art. 23 LIS. We calculate the Nexus ratio, prepare the documentation and defend the position before the tax authorities.
60%
Reduction on income from intangible assets
Who can apply the Patent Box in Spain?
Any company liable to the Impuesto sobre Sociedades (Spanish corporate income tax) can use the Patent Box regime, with no limit on size or turnover.
Eligible companies
- Any company liable to the Impuesto sobre Sociedades
- No size limit — it applies to SMEs and large companies alike
- For assets you exploit yourself and for assets you license out
Eligible intangible assets
- Invention patents and utility models
- Registered industrial designs and models
- Registered advanced software derived from R&D
Conditions to apply
- You created or substantially improved the asset (Nexus ratio)
- Separate cost accounting for each asset
- The licensee cannot be resident in a tax haven
Tax benefits
- 60% reduction on the net income from the asset
- An effective rate of 10% against the general 25%
- Compatible with R&D&I deductions under Art. 35 LIS
How we apply the Patent Box in your company
Audit of intangible assets
We review your technology portfolio to identify patents, utility models, registered designs and advanced software that can be brought into the Patent Box.
Calculating the Nexus ratio
We measure how directly your company was involved in creating the asset. The more in-house development there is, the larger the effective reduction.
Documentation and valuation
We prepare the technical dossier, an independent valuation report and separate cost accounting and, where useful, we negotiate an advance pricing agreement (APA) with the AEAT.
Filing and tax defence
We build the reduction into the tax return (form 200), coordinate it with the Art. 35 LIS deductions and prepare the documentation for any future audit.
Combining the Patent Box with other R&D&I tax incentives
The Patent Box works harder when it is coordinated with the other incentives in the Spanish R&D&I system. Tecnocim manages the full tax strategy.
Art. 35 LIS — R&D&I tax deductions
Deduct 25% to 42% of your R&D costs while the asset is being developed. 100% compatible with the Patent Box.
Art. 12.3 LIS — accelerated depreciation
Free depreciation for R&D assets. It cuts the taxable base in the year the asset is acquired.
Art. 39.2 LIS — cash refund
Monetise unused R&D&I deductions: 80% paid in cash, with no need for a positive tax liability.
Does your company own patents or its own software?
The Patent Box is the most underused tax incentive in Spain. Your intangible asset may already be generating a tax benefit you have not switched on.
Request a free assessmentReview of your intangible assets, with no commitment
Other tax deductions for R&D&I
Accelerated Depreciation for R&D
Apply accelerated depreciation and free depreciation to R&D assets to reduce your Impuesto sobre Sociedades.
R&D Cash Refund
Monetise unused R&D&I deductions: 80% paid in cash with no positive tax liability (Art. 39.2 LIS).
Binding Technical Report
The binding technical report (informe motivado) from MINECO shields your R&D&I deductions before the AEAT. Mandatory for the cash refund.
The Patent Box in figures
60%
Reduction on income from intangible assets
10%
Effective tax rate with the Patent Box
100%
Compatible with Art. 35 LIS deductions
Frequently asked questions about the Patent Box
The Patent Box (article 23 of Law 27/2014 on the Impuesto sobre Sociedades) is a tax regime that leaves 60% of the net income from licensing or exploiting certain intangible assets out of the taxable base. In practice, if your company earns royalties from a patent of its own, only 40% of the net income is taxed at 25%, which works out at an effective rate of 10%.
The list is closed and set by article 23 LIS following the 2018 reform, which brought it into line with the OECD-BEPS Nexus approach: invention patents, utility models, supplementary protection certificates, registered industrial designs and models, and registered advanced software derived from R&D projects. Trade marks, copyright over literary or artistic works and unpatented know-how are excluded.
The maximum reduction is 60%, but it is scaled by the Nexus ratio, which measures how directly your company was involved in creating the asset. It is calculated as own costs plus subcontracting to unrelated third parties multiplied by 1.3, divided by all direct costs of creating the asset, capped at 1. The more in-house development there is, the higher the ratio and the larger the effective reduction.
The company must have created or substantially improved the intangible asset, keep separate cost accounting for the income from each asset, hold technical documentation evidencing that the asset came out of R&D, and make sure the licensee is not resident in a tax haven. An advance pricing agreement (APA) with the AEAT is not compulsory, but it gives the highest degree of legal certainty.
Yes. Both incentives are compatible and combining them is the most powerful tax strategy in the Spanish R&D&I system. During development you apply the Art. 35 LIS deductions, worth 25-42% of your R&D costs. Once the asset earns income, the Patent Box brings the effective rate down to 10%. Tecnocim coordinates both incentives to maximise the total tax benefit.
Yes. The Patent Box has no limit on company size or turnover. Any company liable to the Impuesto sobre Sociedades can apply it, SMEs included. All it needs is an eligible intangible asset (a patent, a utility model, a registered design or advanced software derived from R&D) and compliance with the documentation and separate accounting requirements.
Do you own patents, your own software or other intangible assets?
Free assessment of your eligible assets and a calculation of the tax reduction within 48 hours.
Request a Patent Box review
