Tax Automation: How TaxRAG Captures €35k in Forgotten Subsidies

Spain has over 150 tax reliefs, subsidies and deductions available to SMEs — yet the average SME owner claims less than a third of what they are entitled to. TaxRAG, the AI-powered feature of IgeraLegal, reads the entire Spanish tax code in real time and tells your clients exactly which reliefs they qualify for, citing the precise article of the law, in under 3 seconds. The average recovery per SME: €35,000 per year in missed subsidies.

Why do SMEs miss so many tax reliefs?

Spain's tax system is not designed to be easy. The catalogue of tax reliefs, deductions and subsidies available to a Spanish SME runs to well over 150 distinct lines — spread across national legislation, 17 autonomous community regimes, municipal ordinances and a constantly updated library of binding DGT rulings. An accountant working a standard day simply cannot keep all of this in their head.

The result is a well-documented pattern: SMEs consistently under-claim. The most commonly missed reliefs include the R&D deduction (Articles 35-36 LIS, worth 25–42% of qualifying expenditure), the Patent Box regime (50% reduction on IP income), job creation deductions, the Young Company deduction available in the first three years of operation, and the digital transformation deduction introduced to support Kit Digital participants.

For accountancy firms and tax advisers, this represents both a risk and an opportunity. The risk: a client discovers their adviser missed a valuable deduction — and blames them. The opportunity: the firm that proactively identifies every applicable relief becomes indispensable to its clients and can justify premium fees.

What does TaxRAG actually do?

TaxRAG is the tax intelligence feature of IgeraLegal. It indexes the complete Spanish tax regulatory framework — updated in real time as new circulars and normative modifications are published — and makes it queryable in plain language. When you or your client asks a question, TaxRAG retrieves the relevant regulatory passages and generates a precise, cited answer.

The legislation indexed includes:

National: LIRPF (Personal Income Tax), LIS (Corporate Tax), LIVA (VAT), Ley 49/2002 (tax regime for non-profits and patronage), General Tax Law (LGT), Real Decreto-ley on start-ups and entrepreneurship.

Catalan regional: IRPF autonomous tranches (Catalan residents benefit from specific deductions on top of the national base), ATCAT (Agencia Tributaria de Catalunya) rules on ITPAJD (stamp duty and inheritance tax), and Catalan subsidy programmes via ACCIÓ and the Institut Català de Finances.

DGT consultas vinculantes: The entire public library of binding Tax Authority rulings — the most authoritative source for understanding how the law applies in specific situations.

How does TaxRAG answer a tax query?

TaxRAG works exactly as an expert tax lawyer would — but in 3 seconds rather than 3 hours. The accountant or their client types a question in plain English or Spanish, and TaxRAG retrieves the relevant law, interprets it and generates a precise, cited answer. Every response includes the exact article number, the specific DGT ruling (if applicable) and a clear explanation of whether the situation qualifies.

What is the financial ROI for an accountancy firm?

The economics of TaxRAG are straightforward. The platform costs €299/month for an accountancy firm. For each SME client audited with TaxRAG, the average detected value is €17,500 in missed reliefs. If the firm charges a success fee of 5% on reliefs identified, that is €875 per client. The internal cost of running the analysis — approximately 2 hours of junior staff time — amounts to roughly €60 per client.

Net margin per client per year: €815. Break-even: 5 clients — meaning the investment pays back in the first month of use for any firm with more than a handful of SME clients.

Beyond direct financial recovery, TaxRAG reduces the firm's risk exposure. Every deduction proposed is documented with its exact legal basis. If the Tax Authority questions a deduction, the firm has contemporaneous evidence that it was applied in accordance with current regulations — significantly reducing the risk of sanctions or professional liability claims.

Frequently asked questions about TaxRAG

Does TaxRAG work for Catalan-based companies specifically?

Yes. TaxRAG indexes the Catalan-specific tax framework in full: the autonomous community IRPF tranches that allow Catalan residents to claim additional deductions on top of the national base, ATCAT rules on ITPAJD, and Catalan-specific subsidy programmes managed by ACCIÓ and the Institut Català de Finances. For any company based in Catalonia, the system checks both the national and regional regimes simultaneously.

How does TaxRAG stay up to date with regulatory changes?

The system continuously monitors official sources — the BOE (Official State Gazette), DOGC (Catalan Official Gazette), the AEAT portal and the DGT ruling library — and updates its index automatically when new legislation, circulars or binding rulings are published. Your team never works with outdated regulations.

Can TaxRAG replace our tax adviser?

No — and it is not designed to. TaxRAG is a tool for professional accountants and tax advisers, not a replacement for them. It dramatically reduces the time spent researching legislation and improves the coverage of relief identification, but the adviser remains responsible for applying professional judgement, verifying the client's specific circumstances and signing off the declaration.

What kind of questions can I ask TaxRAG?

Any tax question in plain language: "Can I deduct my company car?", "Do I qualify for the R&D deduction if I use external developers?", "What's the deadline for the annual IS payment?", "Is my client's activity eligible for the Patent Box regime?", "What are the Catalan IRPF autonomous deductions for 2026?" — TaxRAG answers in seconds with a cited legal basis.

Is TaxRAG suitable for smaller accountancy practices?

Particularly so. Large firms already have in-house tax research teams. It is smaller practices — those with 5 to 30 staff and 50 to 300 SME clients — where TaxRAG creates the most significant competitive advantage, enabling them to deliver the same depth of tax analysis as a much larger firm, at a fraction of the cost.

What does IgeraLegal cost?

IgeraLegal, including the TaxRAG feature, starts at €299/month for an accountancy firm. There are no per-query or per-client fees. The subscription includes full access to the tax module, the full regulatory index (national and all 17 autonomous communities), the DGT binding ruling library and technical support.