Tax Incentives

When companies conduct research and innovation activities in collaboration with the University of Oviedo and employ university research groups as R&D and Innovation service providers through research contracts, they can benefit from a range of incentives provided for in existing legislation.

The legal basis to support R&D and Innovation activities, applicable to business contracts with universities and public research centres, is contained in Article 35 of the Corporate Income Tax Law 4/2004.

Incentives for businesses:

  • Application of deductions on corporate tax, from 25% to 12%, of expenditure and investment in R&D and Innovation activities.
  • Payment of the Social Security contributions of research staff
  • The deduction also applies to activities directly undertaken by the company or consortium

Types of tax deductions for R&D and Innovation activities

  • The deduction is 30% for R&D activities, while the deduction for technological innovation activities is 12%. Besides the tax deduction for R&D activities, there is an additional deduction of 20% for staff costs to the entity applicable to qualified researchers exclusively assigned to R&D activities.