Changes to Form 190 regarding carried interest

With effect from 1 January 2023, Law 28/2022 of 21 December, on the promotion of the ecosystem of emerging companies, introduced an amendment to Law 35/2006 on Personal Income Tax (IRPF) through the addition of Additional Provision Fifty-Three (AP 53), regulating the tax treatment of the so-called carried interest for IRPF purposes. This term refers to the additional remuneration paid to managers of certain investment entities (mainly private equity and venture capital) in the event of successful management.

The provision, entitled “Employment income obtained from the management of funds linked to entrepreneurship, innovation and the development of economic activity”, classifies such income as employment income, with 50% of its amount included in the general taxable base of the tax. Specifically, this regime applies to income derived, directly or indirectly, from units, shares or other rights, including success fees, which grant special economic rights in certain closed-ended Alternative Investment Funds under Directive 2011/61/EU, as well as other investment vehicles analogous to the above, provided that a series of additional requirements are met. A detailed analysis of the approved regulation can be found in our Legal Flash | Key aspects of the “startups” law and in our posts New developments on carried interest and Tax regime of carried interest under IRPF.

Recently, through Order HAC/1431/2025 of 3 December, published in the Official State Gazette (BOE) on 12 December, a new development has been approved in the regulation of Form 190—the annual summary of withholdings and payments on account of IRPF to be filed by those who pay IRPF income—which will affect the information to be reported on income subject to the special carried interest regime under IRPF. As a result, the paying entity will be required to specifically identify the remuneration to which this tax regime applies.

Specifically, a new field has been added to Form 190 entitled “Employment income obtained from the management of funds linked to entrepreneurship, innovation and the development of economic activity” considered only for payments under key A of the form (“Employment income: employees in general”). This new field is intended to identify cases in which the reported payments include employment income derived directly or indirectly from units, shares or other rights, including success fees, to which the carried interest rule (section 3 of Additional Provision 53 of the IRPF Law) has been applied.

These changes will apply to Form 190 for financial year 2025, which must be filed from 1 January to 2 February 2026 (as 31 January 2026 falls on a Saturday).

Paz Irazusta
Alicia de Carlos