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V1619-14 23 June 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · operaciones societarias

Contribution of real estate to a foreign company not subject to corporate tax but liable for AJD

An Irish company seeks to have its partners contribute a property in Spain through a capital increase. The DGT determines that no corporate tax applies due to the company's effective seat outside Spain, but AJD tax is due under the legal documentation regime.

The question raised

Two questions are raised:

The DGT's ruling

When a capital increase is carried out by a company with its effective management or tax residence in another EU Member State, corporate transaction tax is not applicable. However, as it is a registrable notarial document and concerns real estate, the Documented Legal Acts modality with a variable quota applies. The transaction is onerous as participation securities are received, therefore it is not subject to Donation Tax.

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