Skip to content
Back to index
V2059-18 11 July 2018 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · tipo de gravamen reducido

Newly established companies may apply the reduced 15% tax rate if they carry out an economic activity

A real estate development company incorporated in 2016 sought clarification on whether it could benefit from the reduced tax rate. The DGT ruled that, as it carries out development activities and is not a holding company, the reduced rate may apply in the financial year in which it generates profits.

The question raised

Whether the reduced tax rate of 15% for newly created companies applies to the entity created in 2016.

The DGT's ruling

Newly created entities carrying out economic activities shall be taxed at 15% in the first tax period with a positive base and in the following one. For real estate development to constitute an economic activity, there must be an organization of production means or human resources on own account. Mere intention or preparatory actions are not considered the commencement of activity, but the execution of works and the sale of the property suggest the development of the activity.

Book your free first meeting