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V0896-18 6 April 2018 · SG de Fiscalidad Internacional Criterion in force
IRNR · participación sustancial

Transfer of substantial share in Spanish company taxed in Spain under IRNR

A French resident enquires about the taxation of the sale of a 45% share in a Spanish company. The DGT determines that, as it is a substantial share, the gain is taxable in Spain pursuant to the double taxation treaty with France.

The question raised

Question raised. The following is stated in summary:

The DGT's ruling

According to the Spain-France Convention, gains from the disposal of a substantial holding in a company resident in Spain may be taxed in Spain. As 45% of the capital is held, it is considered a substantial holding. The gain shall be taxed under the Non-Resident Income Tax without exemptions. The tax accrues when the change in assets occurs, without the possibility of proportional imputation in transactions with deferred payment.

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What is published here, applied to a company or a specific case. The first meeting is free.

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