There are currently more than 10,000 registered foundations in Spain, which has grown steadily in recent years, reflecting an increase in society’s commitment to social, educational, cultural, and research causes. These entities play a crucial role, channelling resources and efforts for the benefit of the community. However, effective management and compliance with their legal and fiscal obligations are essential for them to achieve their objectives sustainably and transparently.
Founding such an entity is not an easy task, and its success depends not only on the passion and commitment of those behind it but also on efficient and accountable management. Like companies, foundations must comply with a series of legal, fiscal, and operational requirements to function properly and transparently in our country.
For this reason, it is necessary to examine the figure of foundations closely and highlight the obligations and good practices that will allow entities like yours to maximise their impact and comply with current regulations.
What is a foundation?
First of all, a foundation is a non-profit entity created to allocate resources to general interest purposes, such as social, cultural, educational, environmental, scientific, or health. Unlike associations, which have members, a foundation is constituted from initial assets, donated by individuals or legal entities, which are used exclusively to fulfil its objectives.
In Spain, foundations are regulated by Law 50/2002, which states that they must carry out activities for the benefit of the community and not their founders. Each foundation has a clear mission statement in its statutes and operates under specific rules that vary according to the country’s legislation. This ensures that their work is aligned with social welfare and sustainable development.
What are the benefits of having your foundation?
First of all, to facilitate their work and enhance their impact, the Spanish legal framework offers a number of tax benefits that can help these entities to optimise their resources and maximise their contribution to society.
- Corporate Income Tax (IS) exemptions: Foundations are exempt from IS on income generated by their own activities that are used for their foundational purposes.
- Deductions in Personal Income Tax (IRPF): Donors to foundations can deduct a percentage of their donations in their personal income tax return, up to 75% for the first 150 euros and 30% for the rest.
- Corporate Income Tax (IS) deductions: Companies that donate to foundations can also benefit from tax deductions of up to 35%.
- Exemptions from Wealth Tax: Assets used by foundations to fulfil their purposes are exempt from Wealth Tax.
- Advantages in Labour Recruitment: They can benefit from tax incentives for hiring groups at risk of social exclusion.
How can LEIALTA help you with your foundation?
Overall, at LEIALTA, we offer comprehensive support to foundations to optimise their operation and maximise their social impact. Here are some of the ways in which we can help you:
- Start-up: We take care of all the legal procedures, from the drafting and management of the documentation required for the creation of the foundation to compliance with both state and regional regulations. We take care of registering the statutes, social agreements, minutes, and certifications, simplifying each step of the process and guaranteeing correct registration in the official registers.
- Legal, tax, accounting, and labour advice: Our team of experts will assist you in complying with all legal regulations and obligations, ensuring that your foundation is up to date with the essential tax and administrative requirements for efficient and sustainable management.
- Resource management and financing: We help you in the planning and management of your assets, as well as in the identification of available subsidies and grants. In addition, we support you with clear and transparent financial reporting.
We are committed to the success of your foundation and its ability to make a positive impact on the community. If you would like to know more about how we can work together, please do not hesitate to contact us, we are here to help!
