Both legal and natural persons are free to support certain humanitarian and social causes and enjoy fiscal relief. Please find hereinafter a sum-up of certain cases.


The law on sponsorship[1] allows the sponsoring of certain organisations in different fields (e.g. charitable institutions), as well as patronage, implying the disinterested support of individuals in the fields of culture, art, medicine, etc. Among other things, a written sponsorship contract, or an authenticated patronage document with specific content must be drawn up.

For legal and natural persons, the fiscal code regulates certain facilitations.[2]

Profit tax payers

Companies that are subject to profit tax are allowed, in cases specified by law, to offer sponsorship. The cost of the sponsorship is not deductible, but it can generate a fiscal credit, meaning the deduction of the entire sponsorship amount from the profit tax to be paid. This would be applied up to a limit matching the lower of the following values:

  • 20% of profit tax to be paid
  • 0.5% of turnover.

The fiscal credit allows the sponsor to pay the amount to a non-profit organization, instead of managing it as tax. In order to be taken into account when calculating the year’s profit tax, before ending the calendar year, the sponsorship contract must be drawn up and the payment must be made.


As from 2018, micro-companies are also able to offer sponsorship under certain circumstances.

As opposed to tax payers subject to corporate tax, which can support the various entities mentioned in the sponsorship law (within the tax boundaries), micro-companies can obtain fiscal relief only when supporting non-profit organisations and cult places that are certified as providers of social services with at least one licensed service. The list of certified providers of social services can be found on the website of the Ministry of Labour.

The relevant amounts can be deducted from the tax of the micro-companies. In this case, there is a limit of 20% of the tax owed by the micro-company for the quarter in which the sponsorship took place.

The amounts that are not deducted from the micro-company tax will be reported for the next 28 quarters. The deduction of these amounts takes place in successive quarters, in the order of their registration, within the same limit.  


Both tax payers subject to corporate tax and micro-companies giving sponsorship or patronage must fill in and submit a declaration about the beneficiary of any sponsorship (D 107).

The deadline for submitting the declaration is the same as the one for submitting the corporate/micro-company tax. For tax-payers that have a different financial year, or those in insolvency or liquidation procedures, specific submission deadlines apply. The first deadline for submitting the form was set for 2019. 

Natural persons

Natural persons whose income originates from salary or similar elements (rent, dividends, copyrights, pensions, income originating from sport activities, freelance activities etc.) can distribute a certain percentage of the annual income tax they pay, as follows:

  • A share of 2% to support non-profit organisations established and functioning under lawful conditions, and of cult places; or
  • A share of 3.5% to support non-profit organizations and cult places which operate as providers of social services, certified with at least one licensed service, under observance of the law.   

Tax-payers may opt for the deduction and payment of these amounts to take place for a period of two consecutive years, directly through the payer of the income. This is done by an individual declaration, or by submitting a request to the competent tax authorities within the legal deadline for submitting the declaration of income tax and social contributions owed by natural persons, respectively until 15th March of the year following the year in which the income is achieved.