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V4405-16 ·14 October 2016 ·consulta-vinculante Medium impact
Tax

Dissolution of a foreign company only triggers corporate tax on corporate transactions if it conducts business in Spain

A taxpayer seeks to dissolve a Gibraltar-based company that holds shares in a Spanish company owning real estate. The DGT rules that the dissolution will only be subject to tax on corporate transactions if the foreign company effectively conducts business operations in Spain.

In 6 key points

How it affects those involved

This ruling clarifies the tax implications for the dissolution of foreign entities, establishing that the presence of assets or shares in Spain is insufficient to trigger tax on corporate transactions unless there is actual business activity within the country.

Lifecycle

2016-10-14PublishedPublished 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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