TaxDown raises €4M in funding to grow its AI tax platform.

      The Madrid-based tax fintech experienced a twofold increase in revenue in 2025 and achieved profitability. It is now pursuing structured debt to expand its AI platform, demonstrating that its capital strategy is as strategic as its product development.

      While most tax software firms emphasize their user count, TaxDown prefers to highlight how little it cost to acquire them. The company announced on Thursday that it has obtained €4 million in debt financing from BBVA Spark, the Spanish bank's division for high-growth enterprises. This financing is supported by the European Union's NextGenerationEU recovery fund and the European Investment Fund, along with additional backing from Spain through the state compartment of the InvestEU program.

      What the announcement underplays is that this marks the second €4 million deal TaxDown has finalized within a year. In April 2025, it raised the same amount in equity from the Madrid-based venture capital firm Bonsai Partners, with ongoing support from existing backers, including Base10, JME Ventures, and 4Founders.

      While the two deals differ structurally—equity versus debt—they collectively illustrate a company adept at self-financing. "We don’t think mega-rounds equate to success," stated Enrique García, CEO and co-founder of TaxDown, during the Bonsai funding announcement. The deal with BBVA Spark aligns with this outlook: it involves structured debt, EU-backed leverage, and no dilution.

      Founded in 2019 by García, Álvaro Falcones, and Joaquín Fernández, TaxDown emerged to address a clear issue: Spanish taxpayers were missing out on money each year, either by not filing tax returns or by overlooking eligible deductions. The platform integrates proprietary AI technology with human tax advisors to assist individuals in filing returns, identifying deductions, and managing other tax-related tasks.

      According to BBVA’s press release, TaxDown boasts over four million users and serves as a technology partner for more than 500 companies. It is the leading platform for processing personal income tax returns in Spain, having managed over €1.5 billion in taxes since its inception. In 2024, one in four customers who utilized the service saved an average of €300 on their returns.

      Most impressively, in 2025, TaxDown's revenue surged by over 100% year-on-year, and the company achieved profitability. In a European fintech environment where many well-capitalized firms struggle to become profitable, this combination of scale, growth, and healthy margins is noteworthy.

      TaxDown’s international goals are geared toward Latin America, with its launch in Mexico in 2022. The region faces similar challenges that TaxDown tackled in Spain: convoluted tax systems, a lack of digital resources, and millions of individuals who could benefit from automated guidance without easy access.

      The new financing from BBVA Spark will be directed toward expanding the technology team and developing new AI-driven features. While the company has not specified what these features will entail, insights from the Bonsai funding suggest potential developments in virtual advisor tools, increased automation of the filing process, and deeper integration with banking partners.

      Additionally, TaxDown is an official partner of the Spanish Tax Agency and a member of the Asociación Española de Asesores Fiscales, credentials that are significant in a regulated industry where trust is hard to establish.

      This progress was not achieved through a massive funding round but through seven years of consistent execution, a co-investor relationship with one of Spain's largest banks, and a capital strategy that prioritizes leverage over dilution for funding growth. The coming years will determine if this strategy can scale to meet its aspirations in the Latin American market.