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V1897-23 29 June 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · rama de actividad

Contribution of an activity branch to a company may qualify for fiscal neutrality under specific conditions

A natural person enquires whether they can contribute their property leasing activity to a commercial company under the fiscal neutrality regime. The DGT states that such a contribution must constitute an activity branch and meet specific accounting and allocation requirements.

The DGT's ruling

To apply the tax neutrality regime of the LIS, the contribution must consist of a branch of activity that constitutes an economic unit capable of operating by its own means. The natural person must maintain accounting records in accordance with the Commercial Code and the assets must be allocated to the economic activity for at least three years. In the case of real estate rental, the activity is only considered economic if at least one person is employed under a full-time employment contract. If these requirements are met, no income is integrated into the IRPF and the acquisition values and dates are maintained.

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