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V0923-15 25 March 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · residencia fiscal

Luxembourg companies moving domicile to Spain may trigger tax residency and corporate tax liability

The DGT responds that moving the registered office of two Luxembourg companies to Spain results in tax residency in Spain, thereby making them subject to corporate tax.

The question raised

1. Whether the transfer of registered office to Spain of Luxembourgish companies gives rise to any taxation under Corporate Income Tax.

The DGT's ruling

The transfer of registered office to Spain entails obtaining tax residence pursuant to Article 8 of the LIS. If tax residence in Spain occurs, entities become taxpayers of Corporate Income Tax on the entirety of their worldwide income. In the event of dual residence, the Convention between Spain and Luxembourg shall apply to determine residence by means of the place of effective management. The transfer itself does not generate income for the tax base.

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