TaxDown Secures €4 Million Financing to Enhance AI Tax Platform

TaxDown, a Madrid-based tax technology company, has successfully secured €4 million in debt financing from BBVA Spark, the venture unit of the Spanish banking giant. This funding comes as the company aims to expand its artificial intelligence (AI) tax platform, marking a significant step in its capital strategy. The financing is supported by the European Union’s NextGenerationEU recovery fund and the European Investment Fund, with additional backing from Spain through the state compartment of the InvestEU programme.

This latest financing round is noteworthy as it is the second €4 million deal TaxDown has completed within a year. In April 2025, the company raised a similar amount in equity from Bonsai Partners, reflecting a diverse and efficient approach to funding. According to Enrique García, CEO and co-founder of TaxDown, the company does not equate large funding rounds with success. “We don’t believe mega-rounds are a synonym for success,” he stated during the Bonsai funding announcement.

Founded in 2019 by García, Álvaro Falcones, and Joaquín Fernández, TaxDown was established to address a common issue: Spanish taxpayers frequently fail to claim entitled deductions or do not file their taxes at all. The platform leverages proprietary AI technology alongside human tax advisors to assist individuals with their tax returns, identify eligible deductions, and manage various fiscal processes.

The company reports impressive statistics. TaxDown has over four million users and partners with more than 500 companies. It is recognized as the platform that processes the highest number of personal income tax returns in Spain, managing over €1.5 billion in taxes since its inception. Notably, one in four customers who used TaxDown in 2024 saved an average of €300 on their return. In a remarkable achievement, TaxDown’s revenue surged by over 100% year-on-year in 2025, propelling the company to profitability.

TaxDown’s international aspirations are particularly focused on Latin America, where it launched operations in Mexico in 2022. The region reflects a similar challenge to that faced in Spain: complicated tax systems and limited access to digital tools. Millions could benefit from automated guidance that is currently lacking.

The recent funding from BBVA Spark will facilitate the expansion of TaxDown’s technology team and the development of new AI-driven features. Although the company has not provided specific details on these forthcoming features, it hints at enhancements such as virtual advisor tools and deeper integration with banking partners. TaxDown is also recognized as an official partner of the Spanish Tax Agency and is a member of the Asociación Española de Asesores Fiscales, credentials that are crucial in a regulated environment where trust is paramount.

TaxDown’s growth trajectory has been driven by a commitment to steady execution, a robust partnership with one of Spain’s largest banks, and a funding strategy that prioritizes leverage over dilution. The success of this approach raises questions about its scalability in the expansive Latin American market, a challenge that the company will address in the coming years.