Discover how the cultural tax deduction scheme, also known as Cultural Tax Equity, can transform the cultural funding landscape. This innovative model not only boosts cultural projects such as concerts and activities, but also offers companies a unique opportunity to combine social responsibility with tax benefits. Investing in culture is investing in the economic and social future of our society.
In the dynamic world of live music, funding has historically been one of the main challenges. However, the cultural tax deduction scheme, also known as Cultural Tax Equity, is transforming this reality. Inspired by the tax benefits of the audiovisual sector, this system is presented as a key tool to boost cultural projects and at the same time generate opportunities for companies interested in combining social responsibility with economic profitability.
At the Fundación Tres Culturas, we work tirelessly to promote culture as a space for dialogue and understanding. Throughout the year, we organise numerous concerts and cultural activities that attract a diverse public and consolidate the region as a reference in cultural offerings. But, like many cultural producers, we face the challenge of guaranteeing the economic sustainability of these projects. For this reason, we consider the cultural tax deduction scheme to be a unique opportunity to involve the business fabric in this shared mission.
What are cultural tax deductions?
This regime allows deduction of up to 20% of production expenses on cultural projects, which represents a powerful incentive to support the sector. Deductible items include:
- Artist caches.
- Technical and production costs.
- Promotion and marketing.
For every €100 invested, cultural promoters can recover €20. In addition, companies that choose to participate as investors can benefit by recovering 100% of their initial investment, plus an additional 20% in tax benefits.
This makes culture not only a socially responsible, but also a financially attractive investment.
A practical example of how it works:
To illustrate the impact of this regime, imagine a festival with a budget of 1 million euros:
- The producer can deduct up to €200,000 in expenses.
- A company investing €100,000 could deduct €120,000, generating a direct tax benefit of €20,000.
This financial scheme turns collaborations between companies and cultural projects into strategic synergies: cultural promoters obtain essential resources, while companies diversify their investments and obtain a significant fiscal return.
Why is it important to invest in culture?
The positive impact of this regime goes beyond tax benefits and affects all actors involved:
For cultural producers:
- Access to additional funding to innovate, diversify and ensure the sustainability of projects.
- Reduced reliance on traditional revenues such as tickets or merchandising.
For investing companies:
- Return on initial investment plus a return of 20%.
- Reinforced reputation as companies committed to culture and social responsibility.
- New opportunities for visibility and strategic partnerships in branding, sponsorship and events.
For society at large:
- Stability and growth of the cultural industry, a key sector for the country's identity and economy.
- Job creation and attracting foreign investment.
- Promoting social cohesion and economic competitiveness.
At the Fundación Tres Culturas, we firmly believe in the transformative power of culture as a driver of social and economic progress. Every year, we organise concerts, exhibitions and events that not only celebrate the cultural richness of our region, but also contribute to its economic and social development.
However, carrying out these projects requires the support of strategic allies who share our vision. This is why we want to highlight the potential of cultural tax deductions as a bridge between culture and the business world.
A different model to traditional sponsorship
While patronage has traditionally been an important way to support culture, this tax regime offers additional advantages. While patronage allows for the recovery of between 30% and 35% of the contribution made, cultural tax deductions ensure full recovery of the initial investment plus an additional 20%.
This makes cultural tax deductions a key tool for boosting the cultural sector, offering clear benefits for both business and society.
Invest in culture, invest in the future
Cultural tax deductions are not just an economic incentive; they are an invitation to be part of the growth of an essential sector. Culture is not just art: it is identity, connection and a driver of development.
At the Fundación Tres Culturas, we are convinced that collaboration between companies and cultural projects can generate a positive and lasting impact. If you are part of a company looking to diversify your investments or wish to explore new forms of corporate social responsibility, this scheme is the perfect opportunity to join the change.
Interested?
Find out how you can participate in cultural projects like the ones we promote at the Fundación Tres Culturas. Together we can build a future in which culture is an engine of inspiration, connection and transformation.