Skip to content
Back to index
V0436-15 4 February 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · entidades de tenencia de valores extranjeros

Profit from transfer of foreign holding share may be exempt from tax

A Spanish company under the foreign holding entities regime seeks clarification on the tax treatment of profit from selling a share in a foreign holding entity. The DGT explains how the exemption applies based on the subgroup's compliance with foreign business activity requirements.

The question raised

What would be the tax treatment of the potential capital gain that could arise from the transfer of the shareholding in the entity Holding BV by the taxpayer. Specifically:

The DGT's ruling

Income from the transfer of shares in a non-resident entity may be exempt if the requirements of Article 21 of the TRLIS are met. For a holding company, the income requirement is deemed met if at least 85% of the income of the subgroup (comprising the holding company and its subsidiaries) derives from business activities abroad. If the requirements are not met in any fiscal year, the exemption shall be applied proportionally in accordance with the rules of Article 21.2 of the TRLIS.

Free assessment and quote