Skip to content
V1773-23 ·20 June 2023 ·consulta-vinculante Medium impact
Tax

Merger by absorption may qualify for the European Company special regime subject to commercial and tax requirements

A query was raised regarding whether a merger by absorption between two companies within a group with an Italian parent company could apply the special European Company regime. The DGT indicates that for this to occur, the transaction must comply with commercial regulations and Corporate Tax requirements, provided its primary purpose is not tax advantage.

In 6 key points

How it affects those involved

This ruling clarifies the conditions under which cross-border mergers can benefit from the European Company status, emphasizing that commercial substance must prevail over tax planning.

Lifecycle

2023-06-20PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact