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V0754-18 21 March 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · fusión

Mergers of collective investment schemes may qualify for the special LIS regime if requirements are met

A query was raised regarding whether the merger of a real estate investment fund can apply the special tax regime for European Companies. The DGT indicates that this is possible provided the requirements of Article 76.1 of the LIS are met and the transaction is driven by valid economic reasons.

The question raised

Whether the aforementioned transaction may benefit from the special tax regime of Chapter VII of Title VII of the LIS.

The DGT's ruling

If the transaction is carried out under Law 3/2009 and the Regulation of the IIC Law, and complies with Article 76.1 of the LIS, the special regime of Chapter VII of Title VII of the LIS could apply. However, pursuant to Article 89.2 of the LIS, it shall not apply if the primary objective is tax fraud or evasion. The economic motives of the transaction, such as management concentration, cost savings, and economies of scale, may be considered valid to prevent the application of the prohibition based on a merely tax-driven purpose.

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