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V2037-19 ·7 August 2019 ·consulta-vinculante Medium impact
Tax

Total demergers may qualify for special tax regime if based on valid economic reasons

An architecture firm has requested clarification on whether splitting into two entities (one for services and another for real estate) qualifies for the special demerger tax regime. The Directorate General for Taxes (DGT) indicates that, provided commercial regulations are met and the allocation of shares is proportional, this regime may apply as long as valid economic reasons exist.

In 6 key points

How it affects those involved

Companies undergoing structural reorganisations may benefit from tax neutrality if they can demonstrate that the split is driven by genuine economic objectives rather than purely tax-driven motives.

Lifecycle

2019-08-07PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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