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V2119-19 ·12 August 2019 ·consulta-vinculante Medium impact
Tax

Acquisition of shares in an entity with over 50% non-business real estate assets will be taxed as a transfer of immovable property

A query was raised regarding the taxation and the taxable person in the acquisition of 100% of the shares of an entity whose assets consist primarily of real estate not used for business activities. The DGT ruled that, as the objective requirements for tax avoidance are met, the transaction will be taxed as a transfer of immovable property.

In 6 key points

How it affects those involved

This ruling clarifies that transactions involving entities with significant non-business real estate holdings may be recharacterised for tax purposes to prevent tax avoidance, potentially increasing the tax burden on such acquisitions.

Lifecycle

2019-08-12PublishedPublished 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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