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V1184-24 23 May 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención

Conditions for exemption from Wealth Tax on shares in a holding company investing in a SCR

The consultant asks whether their shares in a holding company that has invested in a private equity fund are exempt from Wealth Tax. The DGT examines whether the requirements relating to economic activity, shareholding percentage, and management functions are met.

The question raised

Whether the exemption in Wealth Tax, regulated in Article 4.Eight.Two of the LIP, is applicable to the holdings that the taxpayer holds in the holding company following the investment made by said entity in the SCR.

The DGT's ruling

For the exemption to apply, the holding company must not manage movable or immovable property; holdings in the SCR shall not be counted as securities if they grant at least 5% of voting rights and are held to manage the entity using its own resources. The participation requirement is met if the family group holds at least 5% or 20%, as applicable. Finally, management functions must be exercised while receiving remuneration exceeding 50% of personal income.

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