Madrid-based TaxDown raises €4 million to double down on AI and redefine the future of tax services

Spanish startup TaxDown has raised €4 million in fresh funding from Bonsai Partners to further develop its AI-powered platform and improve how people manage their taxes. The company, already generating over €10 million in revenue, plans to use the capital to grow its team, enhance its technology, and continue refining the user experience. Founded in […] The post Madrid-based TaxDown raises €4 million to double down on AI and redefine the future of tax services appeared first on EU-Startups.

Apr 23, 2025 - 04:44

Madrid-based TaxDown raises €4 million to double down on AI and redefine the future of tax services

Spanish startup TaxDown has raised €4 million in fresh funding from Bonsai Partners to further develop its AI-powered platform and improve how people manage their taxes. The company, already generating over €10 million in revenue, plans to use the capital to grow its team, enhance its technology, and continue refining the user experience.

Founded in 2019 by Enrique García, Álvaro Falcones, and Joaquín Fernández, TaxDown has changed how millions of people in Spain and Latin America file their tax returns. Its technology automatically analyses current regulations to apply all relevant deductions, letting users complete their returns in just a few minutes. Behind the platform is a team of more than 200 tax advisors, helping ensure each return is accurate and optimised.

What makes TaxDown stand out is its commitment to growing in a sustainable and measured way. At a time when many startups chase large funding rounds, TaxDown has taken a different approach—focusing on building strong foundations, efficient operations, and tech-driven impact.

“We don’t believe mega-rounds are a synonym for success,” said Enrique García, CEO and co-founder. “Our model proves it’s possible to scale efficiently, make AI work for people, and stay profitable—without needing to raise hundreds of millions.”

AI at the heart of the platform

With this new investment, TaxDown is doubling down on AI. The company plans to roll out new features that further automate the tax process and introduce virtual advisor tools to guide users along the way. The goal: a paperless, personalised, and seamless tax experience.

So far, TaxDown has simulated over 2 million personal income tax returns and leads the market in filing volume in both Spain and Mexico. With more than 30,000 user reviews and a 4.7-star rating on Google, the platform has earned the trust of a wide user base. Internally, its AI systems help tax advisors work up to 200 times more efficiently—automating tasks like data filtering, drafting responses, and keeping teams updated with real-time changes in tax laws.

“Artificial intelligence allows us to grow fast without adding complexity,” García added. “We’re processing millions of data points with a level of personalisation that would have been impossible not long ago—delivering real savings and peace of mind to our users.”

The round was led by Bonsai Partners, one of Spain’s most experienced VC firms, with a track record that includes Idealista, Wallapop, and Glovo. Existing investors Base10, JME Ventures, 4Founders, Atresmedia, and Mediaset have also reaffirmed their support, backing TaxDown’s long-term vision.

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