fr en
Contact us
Home Our blog Guarantee the success of your R&D Monetization Incentive

Guarantee the success of your R&D Monetization Incentive

Turn your tax deductions into cash by monetising the Research Tax Credit in Spain. This solution, which is ideal for companies in a loss-making situation or with modest profits, allows you to receive up to 80% of the RTC in cash. Find out more about the steps to take and the conditions to qualify.

Decoding

21.01.25

4 min

Monetising the Research Tax Credit (RTC) in Spain: ensure your success!

The cashback or monetization of your R&D Tax Credit (RDTC) is an incentive available in Spain that allows you to obtain liquidity from R&D tax deductions, which is especially beneficial if you do not have to pay Corporate Tax due to being in a loss position or if your tax payment is low due to moderate profits.

How does this process work?

The monetization process allows you to obtain up to 80% of your RDTC figure, with a limit of up to €1 million for technological innovation activities and €5 million for R&D, depending on the investment in Innovation made by the company. However, in order to be able to claim it the company must meet certain requirements that ensures that such company continues to invest in R&D.

What are the requirements?

The requirements for monetization are the following:

  • There is a one-year waiting period between the fiscal year the R&D claim was generated and the year the monetization can be claimed.
  • The R&D investment must be kept for at least another 2 years.
  • The total workforce of the company or those dedicated to R&D must be maintained for 2 years.
  • The projects must obtain a Binding Report (Informe Motivado Vinculante, IMV).

What is a Binding Report (IMV) and how to obtain it?

A binding report (IMV) is a document issued by authorized bodies that qualify the activities of a project as R&D and/or Technological Innovation within the framework of an annual period. IMVs ensure that an R&D project has been audited technically and economically. As such, they serve as legal assurance, providing companies with greater security in case of an audit by the Spanish Tax Agency.

Why should you choose FRS Consulting?

At FRS, our expertise in R&D innovation incentives covers significantly IMVs and the monetization process as a whole. And it’s not only us who claim so: the quality of our work is visible in the annual ranking prepared by the Spanish General Secretary of Innovation. Each year, they publish data related to IMVs of R&D tax deduction applications for R&D activities. This year’s review covers the consolidated figures for 2022. FRS Innovation Consulting is proud to rank 1st among other consulting firms in this sector: with 100% of the IMVs applications we have prepared for our clients being granted.

So if you’d like to know more about this process and guarantee your validation report (IMV), contact us now!

The list of consulting firms and their success rates at obtaining IMVs can be found below.

This content may also interest you

4 min

Guarantee the success of your R&D Monetization Incentive with FRS Consulting

The cashback or monetization of your R&D Tax Credit (RDTC) is an incentive available in Spain that allows you to obtain liquidity from R&D tax deductions, which is especially beneficial if you do not have to pay Corporate Tax due to being in a loss position or if your tax payment is low due to moderate profits.

Decoding 17.06.24

To find out more

Subscribe to our newsletter

Receive our news

"*" indicates required fields

I have read and accept the data protection policy de FRS Consulting

This field is for validation purposes and should be left unchanged.