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V1730-17 4 July 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IS · aportación de activos

The contribution of assets received through improvement pacts to a family company may have valid economic reasons

Grandparents transfer real estate to their grandchildren through improvement pacts and the latter, in turn, intend to contribute said assets to the family company to comply with a family protocol. It is consulted whether this contribution of assets is carried out for valid economic reasons for the special regime of Corporate Income Tax.

The question raised

Question posed: Whether the contribution to the family limited company of the assets received by the grandchildren through the succession improvement pact is carried out for valid economic reasons (consisting of attempting to ensure their good administration, future maintenance, and submission to the provisions of the family protocol)

The DGT's ruling

The contribution of assets with the purpose of ensuring good administration, their future maintenance, and their submission to the provisions of a family protocol may be considered an economically valid reason pursuant to Article 89.2 of the LIS. The special regime does not apply if the operation has as its main objective tax fraud or evasion, or if it lacks economic reasons such as the restructuring or rationalization of activities.

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