Skip to content
Back to index
V1856-14 11 July 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · cooperativa protegida

Housing cooperatives only enjoy tax protection if non-member income does not exceed 50%

A housing cooperative in Madrid has requested clarification on whether it qualifies as a tax-protected or specially protected cooperative. The Directorate General for Taxes (DGT) indicates that to be considered protected, it must comply with regional regulations and not exceed the limit on transactions with third parties, but it cannot be classified as specially protected due to its nature.

The question raised

1) Whether the consultant can be considered a tax-protected or especially protected cooperative.

The DGT's ruling

To be a tax-protected cooperative, the entity must comply with Law 4/1999 of the Community of Madrid and must not incur the causes for loss of status set forth in Article 13 of Law 20/1990. Specifically, it may not conduct transactions with non-member third parties that exceed 50% of its total income. Regarding special protection, housing cooperatives are not included in the list of especially protected cooperatives under Article 7 of Law 20/1990.

Book your free first meeting