Social Security incentives for research personnel

Under the current regime, the 40% incentive applies to indefinite hiring of research personnel. Contracts entered into before the September 2023 reform may remain subject to the rules applicable when they were originally formalised.

Predoctoral research contracts have a separate Social Security incentive regime and should not be confused with the 40% incentive under Royal Decree 475/2014.

The researcher must work exclusively and for the entirety of their working time on R&D or technological innovation activities.

Up to 15% of working time devoted to training, teaching, dissemination or similar activities can be treated as compatible with exclusive R&D dedication.

We determine whether the activities actually carried out qualify as R&D or technological innovation according to the definitions applicable under Corporate Income Tax legislation.

Administrative work, resource management, marketing, general services, management and other functions that are not themselves R&D activities do not qualify merely because they support an innovative project.

We review the general conditions applicable to current employment incentives, including tax and Social Security compliance, applicable exclusions and, where legally required, the existence and registration of the company's equality plan.

Eligible indefinite research hires generate a 40% incentive on the employer Social Security contribution for common contingencies.

The percentage applies specifically to this contribution and should not be interpreted as a 40% reduction of the employee's entire Social Security cost.

Hiring researchers under 30 provides an additional five percentage points, while hiring women researchers provides another five percentage points.

Both increments are cumulative, meaning an eligible woman researcher under 30 can reach a 50% incentive.

The incentive can be applied for a maximum of three years. Under the current general incentive framework, the researcher must generally remain employed and registered for at least three years, subject to the legally established exceptions for certain termination situations.

We estimate monthly and annual savings by researcher and consolidate them into a forecast for the complete research team, taking into account contribution bases, incentive percentage and remaining eligibility period.

Innovative SMEs officially registered as such can fully combine the research personnel Social Security incentive with R&D tax deductions, subject to the requirements of each incentive.

For other companies, both mechanisms can coexist within the same company or project, but they cannot generally be applied to the same researcher's personnel costs.

The Social Security incentive is a national mechanism. Where the company is subject to foral taxation, references to R&D&I tax deductions and tax authorities are understood as references to the corresponding foral rules and competent administration.

Where the same hiring could qualify for more than one Social Security incentive, the applicable compatibility and option rules must be reviewed before selecting the mechanism.

Under the current common framework, where a worker qualifies simultaneously for several incentives covered by the same regime, only one can generally be applied.

We review whether grants or other public support already finance the same employment costs or employer Social Security contributions.

Concurrent public support for the same purpose is subject to limits, and the original research personnel regulation also excludes cases where public funding explicitly covers the employer Social Security contributions being incentivised.

The incentive is applied through Social Security contribution management using the information communicated by the company, including the data required through the RED System.

The information supplied for applying contribution incentives operates as a responsible declaration and remains subject to subsequent verification.

We structure the evidence required to demonstrate contractual status, role, technical profile, R&D activities and exclusive dedication.

We connect each researcher with the projects, activities and technical work actually carried out and establish recurring evidence that can be maintained throughout the year.

We review changes in role, dedication, project assignment or contractual conditions that could affect eligibility and ensure they are identified before they create inconsistencies in the incentive.

When a company applies the incentive to ten or more researchers for three months or more within the same fiscal year, it must provide a Binding Reasoned Report to Social Security within a maximum of six months after the end of that fiscal year.

The Type D report is an Ex-Post report focused on the researcher rather than the project. Its purpose is to confirm which people fulfilled the requirement of exclusive dedication to R&D&I activities during the relevant period.

The report process requires a technical assessment of the personnel and activities carried out, supported by a technical report issued by an entity accredited by ENAC in accordance with the applicable procedure.

Social Security, the employment authorities and the Labour and Social Security Inspectorate can verify eligibility and supporting evidence. Incorrectly applied incentives may lead to repayment of the amounts not paid, together with the corresponding surcharges and interest.