As part of the considerations and recognitions, and for the promotion of patronage initiatives, Law 49/2002 of 23 December, on the Tax Regime of Non-Profit Entities, contemplates the following tax benefits for donations made:
- Micro-patronage: the first 150€ donated has a deduction of 75% in the total amount of personal income tax.
- The donated amount that exceeds 150€ has a deduction of 30% in the quota.
- Loyalty: a 35% deduction may be applied to donations (instead of the general 30%), provided that donations have been made for the same or a greater amount to the same entity in the two immediate previous tax periods.
- The deduction has a limit of 10% of the taxable income.
For legal entities
- The amount donated has a deduction of 35% in the Corporation tax liability.
- Loyalty in donations: a deduction of 40% (instead of the general 35%) may be applied provided that donations have been made for the same or a greater amount to the same entity in the two immediate previous tax periods.
The deduction is limited to 10% of the tax base for the tax period. Amounts exceeding this limit may be applied in the tax periods ending in the ten immediate and successive years.