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V2564-14 ·1 October 2014 ·consulta-vinculante Medium impact
Tax

Merger of European companies may qualify for special regime if valid economic reasons exist

A query was raised regarding whether a merger operation can apply the special tax regime for European companies. The DGT ruled that this is possible provided the operation meets the requirements of the TRLIS and the Law on Structural Modifications, and is carried out for economic reasons rather than for the purpose of obtaining a tax advantage.

In 6 key points

How it affects those involved

This ruling clarifies the conditions under which cross-border mergers involving European companies can maintain tax neutrality, emphasizing the necessity of genuine economic substance over tax avoidance.

Lifecycle

2014-10-01PublishedPublished 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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