Protected assets of people with disabilities

Spanish law 41/2003 regulates the protected assets of people with disabilities. The aim of this regulation is to encourage the creation of these assets linked to the satisfaction of the vital needs of people with disabilities.

In this sense, a series of measures have been adopted to encourage contributions free of charge to the protected estates, reinforcing the tax benefits in favour of people with disabilities.

Beneficiaries of Protected Assets

Only persons with disabilities affected by the following degrees of disability will be considered as beneficiaries:

1. Those affected by a mental disability equal to or greater than 33%.
2. Those affected by a physical or sensory disability equal to or greater than 65%.

Reductions for contributions to protected assets

1. Persons entitled to the reduction
2. Those who are related in a direct or collateral line up to and including the third degree with the disabled person.
3. The spouse of the disabled person.
4. Those who have the disabled person under guardianship or foster care.
5. Amount of the reduction

The contributions made, which may be monetary or non-monetary, will entitle the contributor to reduce the taxable base, up to a maximum limit of €10,000 per year. The total of the reductions made by all the persons making contributions to the same protected assets may not exceed €24,250 per year. Where applicable, when several contributions are made to the same protected estate and the limit of €24,250 is exceeded, the reduction must be made in proportion to the amount of these contributions. When the contributions exceed the limits foreseen or in those cases in which the reduction is not applicable due to insufficient taxable base, there will be a right to reduction in the following four tax periods, until the maximum reduction amounts are exhausted in each one of them. In the event of concurrence, the reduction from previous years will be applied first.

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Mª del Pilar Samaniego de Tiedra / Lawyer and President of Fundaneed’s Board of Trustees