A 40% Social Security Reduction for Research Staff

Contribution groups 1 to 4 of the General Scheme of Spanish Social Security: group 1 (engineers and graduates), group 2 (technical engineers, surveyors and qualified assistants), group 3 (administrative and workshop supervisors) and group 4 (unqualified assistants). In practice this covers most of the technical and professional roles involved in R&D&I activities: researchers, development engineers, technical directors, heads of innovation and so on.

It is documented through time records that log the hours each employee spends on R&D&I activities. For full commitment, it is enough to show that 100% of their working time goes to research projects. For partial commitment, detailed time records are needed to separate R&D&I hours from other duties. Tecnocim puts in place a simple, auditable recording system that meets the requirements of the TGSS and the labour inspectorate.

Yes, the two are fully compatible. The 40% reduction lowers Social Security contributions (a labour cost), while the deductions under art. 35 LIS lower the Impuesto sobre Sociedades (Spanish corporate income tax), a tax cost. They apply to different items and can be claimed together. In fact, the same research staff who generate the Social Security reduction usually form the calculation base for the R&D&I tax deductions. Tecnocim manages both incentives together to maximise the total saving.

The saving depends on the number of researchers and their contribution base. As a guide, a researcher on a gross salary of €40,000 a year generates a saving of roughly €5,000 to €6,000 a year in employer contributions. A company with 5 researchers on full commitment can save between €25,000 and €30,000 a year. Tecnocim identifies every eligible employee, including profiles the company had not thought of as research staff.

The reduction can be applied from the first month in which the employee carries out R&D&I activities, provided the company reports it to the TGSS on the contribution returns. There is no need to wait for the end of the tax year or to obtain prior authorisation: it is applied directly in the monthly contribution settlement. Tecnocim can also claim the reduction retroactively if we find eligible staff who were not being claimed for.