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V0435-24 14 March 2024 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · aportación de rama de actividad

Requirements for treating property rental activity as a branch contribution for tax neutrality

A natural person asks whether contributing their property rental activity to a company qualifies as a branch contribution to access the special tax neutrality regime. The DGT confirms this is possible if the requirements of economic unity, commercial accounting under the Commercial Code, and prior allocation of assets are met.

The question raised

Whether the contribution of a branch of activity and the economic reasons presented could be considered valid, so that the contribution of the real estate, which constitutes the individual business activity of leasing, to entity A, which is already conducting a similar activity, could be considered. This would allow for the application of the special regime provided for in Chapter VII of Title VII of Law 27/2014 on Corporate Tax, regarding non-monetary contributions.

The DGT's ruling

For the contribution of real estate to be considered a branch of activity and to access the tax neutrality regime, the set of elements must constitute an autonomous economic unit capable of operating by its own means. In the case of leases, the activity must be economic, which requires having at least one employee with an employment contract and full-time working hours. Furthermore, the contributor must maintain accounting in accordance with the Commercial Code and the assets must have been allocated to the activity for at least three years. The operation must not have the primary objective of tax fraud or evasion.

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