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V1401-20 13 May 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Non-monetary contributions may qualify under LIS special regime

A natural person enquires whether their non-monetary holdings in various companies may benefit from the LIS special regime. The DGT states that this is possible if the participation and ownership requirements are met and if the claimed economic motives are valid.

The question raised

Question posed: Whether the non-monetary contribution of the shares, under both alternatives presented in the consultation request by the taxpayer, may qualify for the special tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, and whether valid economic reasons exist.

The DGT's ruling

To apply the special regime for non-monetary contributions, the receiving entity must be a resident in Spain and the contributor must maintain a stake of at least 5% in the entity's equity following the transaction. In the case of social shares, these must represent at least 5% of the equity of the contributed entity, which cannot be an economic interest grouping, a temporary joint venture, or have the management of movable or immovable property as its main activity. Furthermore, the shares must have been held uninterruptedly during the year prior to the contribution. Finally, the transaction must not have the primary objective of tax fraud or evasion, and valid economic reasons justifying the restructuring must exist.

Apply this to a real case

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

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