Lower taxes and better Social Security for artists

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1. It lowers the withholding rate under personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. from 19% to 15% for income from intellectual property when the person receiving it is not the author. It applies from January 1, 2019.
2. It applies the reduced VAT rate to services provided by individual performers, artists, directors and technicians to film producers and organizers of theater and music works, from January 1, 2019.
3. It sets a corporate tax deduction of 20% of expenses made in Spain for producers of foreign film or audiovisual productions, with at least €1 million in expenses and a cap of €3 million per production. The deduction cannot exceed 50% of the production cost.
4. It allows artists in public shows to voluntarily stay in the General Social Security Regime during inactive periods, if they prove at least 20 days of actual work the previous year. They pay contributions themselves, on the minimum base of group 7 at an 11.50% rate, and keep benefits such as retirement, maternity or paternity.
5. It sets the limits of the State Guarantee for cultural works loaned for exhibitions in 2019: €2,250,000 thousand in total, €231,000 thousand per exhibition and €100,000 thousand per work, plus €500,000 thousand for the Fundación Colección Thyssen-Bornemisza.
6. It requires the Government to pass rules within 6 months allowing retirement pensions to be combined with intellectual property income from artistic creation, with an 8% solidarity contribution, and to update the special employment relationship of artists in public shows.

Who it affects

• Artists, performers, directors and technicians working as individuals: They pay less VAT on their services and can keep contributing to the General Regime during periods without work.
• Authors who receive intellectual property income without being the creator: Less is withheld from them under personal income tax: 15% instead of 19%.
• Producers of foreign films and audiovisual works shot in Spain: They get a 20% corporate tax deduction for expenses made in Spain.
• Retirees dedicated to artistic creation: They will be able to combine their pension with income from royalties, paying a solidarity contribution.
• Museums and entities organizing exhibitions with loaned works: They can rely on the State Guarantee within the limits set for 2019.

Words worth knowing

Retención e ingreso a cuenta (withholding)

Money the payer advances to the tax agency on behalf of the person receiving the income, as an advance on their income tax.

Régimen General de la Seguridad Social (General Social Security Regime)

The contribution and benefits system covering most employees in Spain.

Garantía del Estado (State Guarantee)

A commitment by the State to answer for the value of artworks while they are loaned for an exhibition.

Cotización de solidaridad (solidarity contribution)

An extra percentage paid to Social Security when a retirement pension is combined with work activity.

Relación laboral especial (special employment relationship)

A specific set of labor rules for a particular group, different from the standard employment contract.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries