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V0454-14 19 February 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · ganancias patrimoniales

Shareholding contributions from a Spanish company to a new entity may be taxable in Spain

A Norwegian resident enquires about the tax implications of contributing shares in a Spanish company to form a new entity. The DGT states that as the shareholding is substantial, the gain may be taxable in Spain under the IRNR and examines the possible application of special regimes.

The question raised

The taxpayer raises the following:

The DGT's ruling

As it involves a substantial holding (exceeding 25%), the gain from the disposal of shares may be subject to taxation in Spain pursuant to the Spain-Norway Convention. The gain shall be subject to Non-Resident Income Tax (IRNR) unless the exemption conditions of the Non-Resident Income Tax Law (TRLIRNR) are met. Furthermore, the taxpayer may apply the special regime for non-monetary contributions of the Corporate Income Tax Law (TRLIS) if the requirements for holding and valid economic motivation are satisfied.

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