The new tax incentive regime for the promotion of culture in the Basque Country

Abstract

The aim of this article is to analyse the new tax incentives regime for culture approved in the Autonomous Community of the Basque Country. These tax incentives are considered by the European Union as State aid, and therefore we will begin by briefly outlining the requirements set by the European Commission to ensure their compatibility with the EU’s legal principles.
Subsequently, we will examine the background of the current regulation, followed by an in-depth analysis of the new tax regime, which highlights the creation of a new deduction for the production and exhibition of live performing arts and musical performances, alongside the previous deductions for investments and expenses in audiovisual works and the deduction for book publishing.