TaxDown Secures €4M to Scale AI-Powered Tax Filing Across Spain and Latin America: A Game-Changer for Fintech 2025

Scale AI-Powered: Madrid-based fintech startup TaxDown has just raised €4 million in a funding round led by Bonsai Partners, marking a significant milestone in its mission to revolutionize tax filing in Spain and Latin America.

This fresh capital injection, announced on April 22, 2025, aims to enhance its AI-driven platform, streamline tax processes for millions, and fuel expansion into new markets. With a successful rollout in Mexico already under its belt, TaxDown is poised to transform how individuals and businesses manage taxes in Spanish-speaking regions.

In this in-depth news article, we explore the details of this funding, TaxDown’s innovative approach, its growth trajectory, and what this means for the fintech landscape in 2025. Let’s dive into this exciting development!

TaxDown’s €4M Funding: Who’s Backing the Fintech Star? Scale AI-Powered

TaxDown’s latest €4 million funding round, led by Bonsai Partners—one of Spain’s most experienced venture capital firms with a track record in successful startups like Idealista and Glovo—signals strong confidence in the company’s vision.

The round also saw continued support from existing investors Base10 Partners, JME Ventures, and 4Founders Capital, all of whom have been with TaxDown through previous funding stages. Base10, known for backing unicorns like Nubank and Rappi, has been a key player in TaxDown’s journey, while 4Founders Capital brings expertise from its founders, including Javier Pérez Tenessa, former CEO of eDreams.

This investment comes at a time when profitability and operational efficiency are critical for consumer-focused fintech platforms, and TaxDown’s sustainable growth model has clearly resonated with investors. [Source: Tech.eu, EU-Startups]

Why This Funding Matters for TaxDown

The €4 million will be used to bolster TaxDown’s artificial intelligence capabilities and expand its reach across Spain and Latin America. Since its founding in 2019 by Enrique García, Álvaro Falcones, and Joaquín Fernández, TaxDown has focused on simplifying tax filing through a proprietary AI-driven tax engine, supported by a team of over 200 tax experts.

The platform simulates millions of tax returns, automatically applying relevant deductions to maximize savings for users. This funding will enhance these AI tools, which assist advisors with tasks like document filtering, error detection, communications automation, and real-time legal updates, making the tax process faster and more accurate.

Additionally, the capital will support TaxDown’s international expansion, building on its successful entry into Mexico and targeting other Latin American markets where tax filing remains a complex and opaque process. [Source: Tech.eu, EU-Startups]

TaxDown’s Growth Trajectory: From Spain to Mexico and Beyond

Founded in 2019, TaxDown has quickly become a leader in digital tax filing in Spain, handling over €750 million in taxes for its 2 million users and saving them more than €100 million collectively. In Spain, it’s the most recognized brand for tax affairs, filing the highest volume of tax returns among private companies.

The company’s expansion into Mexico has been a standout success, with a fivefold growth over the past year, now serving over 1.5 million users. This rapid adoption reflects the demand for simple, reliable tax solutions in a market where the Mexican tax agency is pushing for more citizens to file returns—over 12 million Mexicans are required to do so annually, a number that continues to grow.

TaxDown’s CEO, Enrique García, noted, “The rate of adoption in Mexico has exceeded our expectations. Now we want to continue growing in Latin America, bringing this technology to millions of people who currently have no access to simple and reliable tools for filing their taxes.” The company aims to reach 3 million users by the end of 2025 while expanding into additional Latin American countries. [Source: Tech.eu, EU-Startups]

How TaxDown’s AI-Powered Platform Works

TaxDown’s core strength lies in its integration of AI with human expertise. The platform uses a proprietary AI tax engine to analyze current tax regulations and apply all relevant deductions, allowing users to complete their returns in just a few minutes—often as little as 12 minutes.

Behind the scenes, a team of over 200 tax advisors ensures accuracy, while the AI handles tasks like data filtering and error detection, making advisors up to 200 times more efficient. This hybrid approach has led to impressive results: TaxDown has simulated over 2 million personal income tax returns and boasts a 4.7-star rating on Google from more than 30,000 user reviews.

The company has also introduced innovations like Spain’s first “Instant Refund” service, which provides immediate repayment of tax refunds, and AsesorIA, a free-access expert tax chat that answers queries 24/7 in simple language. These features highlight TaxDown’s commitment to making tax filing accessible and user-friendly. [Source: Tech.eu, EU-Startups, CB Insights]

Partnerships and New Business Lines

TaxDown has forged strategic partnerships with major financial institutions like Santander and Revolut, integrating its tax services into their banking apps and reaching millions of users. This collaboration enhances accessibility, allowing customers to file taxes directly through their banking platforms.

Additionally, TaxDown has launched a Government as a Service (GaaS) solution, acting as a bridge between corporations and public authorities. This service streamlines processes like opening bank accounts and securing insurance, and several large banks and insurance companies have already adopted it to improve efficiency for their clients.

These partnerships and new offerings demonstrate TaxDown’s ambition to expand beyond individual tax filing into broader fintech solutions, potentially including financial advisory services in the future. [Source: Tech.eu, EU-Startups]

Addressing Crypto and Self-Employed Tax Needs

TaxDown has also positioned itself as a leader in addressing niche tax challenges, particularly for cryptocurrency investors and the self-employed. In Spain, over 7 million people invest in crypto assets, yet many are unaware of their tax obligations—41.4% mistakenly believe they don’t owe taxes on gains.

TaxDown offers a specific module to simplify crypto tax reporting, calculating taxable gains and losses automatically. The platform also supports Spain’s FIFO (First In, First Out) method for capital gains and allows deductions for mining expenses like electricity and equipment depreciation. Additionally, TaxDown now caters to the over 3 million self-employed workers in Spain, helping them navigate complex tax procedures with ease. These specialized features make TaxDown a versatile tool for a wide range of taxpayers. [Source: EU-Startups, TaxDown.es]

TaxDown’s Sustainable Growth Model

Unlike many startups chasing mega-funding rounds, TaxDown has taken a measured approach, focusing on sustainable growth and profitability. “We don’t believe mega-rounds are a synonym for success,” said CEO Enrique García.

“Our model proves it’s possible to scale efficiently, make AI work for people, and stay profitable—without needing to raise hundreds of millions.” Since its founding, TaxDown has raised a total of €21.59 million across multiple rounds, including €5.5 million in 2022 and €5 million in 2024, with consistent support from investors like Base10 and JME Ventures.

This disciplined strategy has allowed TaxDown to build strong foundations while scaling operations, setting it apart in the fintech space where rapid growth often comes at the expense of stability. [Source: EU-Startups, CB Insights]

What’s Next for TaxDown?

With this €4 million funding, TaxDown is set to accelerate its expansion plans. The company aims to deepen its presence in Mexico, where it’s already a category leader, and enter new Latin American markets with high demand for digital tax solutions.

Investments in AI will further enhance its platform, with plans to improve conversational AI features like AsesorIA and explore new fintech services, such as personalized financial advice. TaxDown’s collaboration with the AWS Prototyping Team has already led to advancements in its AI-powered virtual assistant, which uses AWS services and large language models to handle inquiries in Spanish with high accuracy.

Looking ahead, TaxDown’s focus on scalability, observability, and human-centered AI solutions positions it as a leader in transforming tax management across Spanish-speaking regions. [Source: Tech.eu, AWS]

Why This Matters for Fintech in 2025

TaxDown’s success highlights a broader trend in fintech: the deep integration of AI to solve real-world problems. By combining technology with human expertise, TaxDown is addressing a universal pain point—tax filing—in a way that’s accessible, efficient, and user-friendly.

Its expansion into Latin America taps into a growing market of digital adopters, where millions lack access to reliable tax tools. As fintech continues to evolve in 2025, TaxDown’s model of sustainable growth, strategic partnerships, and AI innovation could serve as a blueprint for other startups. For users in Spain and Latin America, this means more savings, less stress, and a modern approach to tax management.

Specification Table: TaxDown’s Funding and Growth

Feature	Details	Why It Matters
Funding Amount	€4 million (April 2025)	Fuels AI development and expansion
Lead Investor	Bonsai Partners	Strong backing from a reputable VC
Other Investors	Base10, JME Ventures, 4Founders Capital	Continued support from key players
Total Funding	€21.59 million since 2019	Reflects steady investor confidence
Founded	2019 (Enrique García, Álvaro Falcones, Joaquín Fernández)	Established fintech innovator
User Base	Over 2 million (1.5M in Mexico)	Significant market penetration
Tax Managed	€750 million for users	Proven impact on tax savings
User Savings	€100 million+ collectively	Real financial benefits for users
AI Features	Simulates 2M+ returns, automates deductions	Enhances efficiency and accuracy
Expansion Plans	Further Latin American markets	Addresses global tax challenges

Final Thoughts: TaxDown’s Bright Future

TaxDown’s €4 million funding round is a testament to its innovative approach and sustainable growth model. By leveraging AI to simplify tax filing, the company is making a tangible difference for millions in Spain and Mexico, with plans to reach even more users across Latin America.

As someone who’s navigated the complexities of tax season, I can appreciate how TaxDown’s platform takes the stress out of the process—whether you’re a crypto investor, a freelancer, or just someone looking to maximize deductions. With strong investor backing and a clear vision, TaxDown is set to redefine tax services in 2025 and beyond.

What do you think about this fintech breakthrough? Share your thoughts in the comments, and stay tuned for more updates on TaxDown’s journey!