TaxDown

# TaxDown: High-Level Overview

TaxDown is a Madrid-based fintech startup that automates income tax filing through AI-powered technology and expert human review.[2] Founded in 2019 by Enrique García, Álvaro Falcones, and Joaquín Fernández, the company has become the leading digital tax platform in Spain and is expanding into Latin America, particularly Mexico.[2][3] TaxDown serves millions of individual taxpayers by simplifying the tax return process—automatically analyzing regulations to identify deductions, processing returns in minutes, and combining algorithmic efficiency with a team of over 200 tax advisors to ensure accuracy.[2][3]

The company has demonstrated strong growth momentum: it has processed over 2 million personal income tax returns, managed more than €750 million in taxes for 2 million users, and helped them save over €100 million collectively.[1][3] With a 4.7-star rating on Google and more than 30,000 user reviews, TaxDown has earned significant market trust.[2] The platform operates on a freemium model, charging users only when calculated tax savings exceed €35, aligning incentives between the company and its customers.[4]

# Origin Story

TaxDown emerged from a clear problem: navigating Spain's complex tax regulations is time-consuming and error-prone for ordinary taxpayers. The founding team developed proprietary technology—including a custom tax language and an AI algorithm called RITA trained on over 40,000 tax returns—that could translate tax law into computational logic without requiring traditional software coding.[4] This architectural innovation proved transformative: by 2021, just two in-house tax experts, supported by the platform's tools, had calculated over 42,000 tax returns, operating at "80x more efficiency than the Spanish average."[4]

Early traction was rapid. By 2021, TaxDown had secured $3 million in seed funding.[4] The company then accelerated its expansion: a 2024 funding round brought €5 million from Base10, JME Ventures, Abac Nest, and 4Founders Capital—led by Javier Pérez Tenessa, former CEO of eDreams.[3] In 2025, TaxDown raised an additional €4 million from Bonsai Partners to deepen its AI capabilities.[2] This measured approach to fundraising reflects the founders' philosophy: sustainable growth and profitability matter more than chasing mega-rounds.

# Core Differentiators

• Proprietary tax language and AI: TaxDown's custom tax language allows non-technical tax experts to encode complex regulations into algorithms, enabling rapid expansion into new markets (targeting 6-month launches per country).[4]

• Hybrid human-AI model: The platform combines algorithmic automation with a team of 200+ tax advisors, ensuring both speed and accuracy. Internally, AI systems help advisors work up to 200 times more efficiently by automating data filtering, drafting responses, and tracking regulatory changes.[2]

• Zero rejection rate: TaxDown's algorithms continuously validate filings against tax authority data in real time, flagging discrepancies before submission. The company reports never having a filing rejected for inaccuracies.[4]

• Instant Refund service: TaxDown became the first company in Spain to offer immediate repayment of tax refunds due, rather than waiting for standard processing timelines.[1]

• Government-as-a-Service (GaaS) solution: Beyond individual tax filing, TaxDown bridges citizens and public authorities, helping large banks and insurance companies streamline account opening and insurance processes.[1]

• Market leadership: TaxDown leads in filing volume in both Spain and Mexico, with the highest number of annual tax returns processed in Spain.[3]

# Role in the Broader Tech Landscape

TaxDown exemplifies a broader trend: AI-driven automation of knowledge work in regulated industries. Tax compliance is a perfect use case—it involves rule-based logic, high stakes (accuracy matters), and significant friction (millions spend hours annually on returns). By combining machine learning with domain expertise, TaxDown demonstrates how AI can augment rather than replace professionals, making them dramatically more productive.

The company also reflects growing momentum in Latin American fintech expansion. Spanish startups increasingly view Mexico and other Latin American markets as natural extensions, leveraging similar languages and regulatory frameworks. TaxDown's success in Mexico validates this playbook.[2][3]

Additionally, TaxDown's philosophy—profitable, sustainable growth without mega-rounds—challenges the venture capital orthodoxy that equates funding size with success. CEO Enrique García explicitly stated: "We don't believe mega-rounds are a synonym for success. Our model proves it's possible to scale efficiently, make AI work for people, and stay profitable—without needing to raise hundreds of millions."[2] This approach resonates in a post-2022 environment where capital efficiency has become a competitive advantage.

# Quick Take & Future Outlook

TaxDown is positioned to become a regional fintech powerhouse by combining deep domain expertise with cutting-edge AI. The company's stated goal is to reach 3 million users and strengthen its Latin American presence.[3] With €4 million in fresh funding earmarked for AI development, expect new features like virtual advisor tools and further automation of the tax process.[2]

The broader opportunity is significant: tax compliance affects hundreds of millions globally, and most markets remain underserved by digital solutions. If TaxDown can replicate its Spain-Mexico success in other Latin American countries—and eventually expand beyond Spanish-speaking markets—it could become a model for how fintech solves regulated, high-friction problems at scale.

The company's refusal to chase growth at all costs, combined with its technical moat and market leadership, suggests TaxDown is building for longevity rather than a quick exit. That disciplined approach may ultimately prove more valuable than any mega-round.