Spain’s TaxDown has closed a €4 million investment round led by Bonsai Partners, a renowned venture capital fund with stakes in companies such as Wallapop and Glovo. This transaction comes at a key moment for the company, which was recently recognized as the second fastest growing scale-up in Spain after exceeding €10 million in turnover.
The Latin American market has become a pillar for TaxDown, with Mexico representing 35% of its volume of operations. Enrique García, CEO of the company, explained to Contxto the reasons for this approach: “We identified that 8 out of 10 taxpayers are entitled to a refund, but 60% never claim it, leaving up to 15,000 Mexican pesos unrecovered”.
This situation is partly due to the “fear of SAT” (Mexico’s Tax Administration Service) that persists among the population. “Many people prefer not to touch anything for fear of making mistakes,” García stated. To address this problem, TaxDown has developed solutions adapted to the local context, managing in just one year of operations to capture 1.5 million users in the country.
Technology that transforms the tax experience
TaxDown’s model combines artificial intelligence with a team of more than 200 tax advisors. Its system has processed more than 2 million personal income tax simulations between Spain and Mexico, automatically analyzing more than 500 tax variables. The results are convincing: a 40% reduction in common tax return errors and detection of non-applied deductions in 32% of cases.
“AI does not replace the expert, but it multiplies their efficiency,” García emphasized. This technological synergy allows advisors to resolve queries 200 times more efficiently, thanks to tools that automate everything from data extraction to regulatory updates.
The new funds will be used primarily to strengthen the AI team and expand operations in Mexico. “We are developing personalized alerts, intelligent tax recommendations and better integration with official sources,” the CEO advanced. The vision for the future is clear: to transform tax filing into a seamless and automatic process, eliminating traditional forms.
This investment reflects a global trend in the tax fintech sector, which has captured more than US$1.2 billion by 2024 according to CB Insights. Latin America represents 15% of this growing market, with Mexico and Brazil as the main focus of expansion.
With this investment and its efficient growth model, TaxDown is positioned as a case study in the application of AI to simplify complex processes. The good results in Mexico lay the groundwork for future expansion in Latin America, always with the focus on making taxation more accessible to all taxpayers.
