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V0405-16 2 February 2016 · SG de Fiscalidad Internacional Criterion in force
IRPF · ganancia patrimonial

The sale of a share in a German partnership may be taxed in Germany and in Spain

A resident in Spain inquires about the taxation of the sale of her interest in an inherited German partnership. The DGT responds that the income may be taxed in both countries and explains how to avoid double taxation.

The question raised

Question raised The applicant raises the following questions.

The DGT's ruling

If the share is classified as real estate under German law, the capital gain may be subject to taxation in Germany pursuant to the Spanish-German Convention. The resident must pay tax in Spain in accordance with the Personal Income Tax Law (LIRPF). To avoid double taxation, the amount paid in Germany for a tax of identical or analogous nature may be deducted in Spain, subject to the limits established in the Convention and domestic regulations.

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