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V2073-19 8 August 2019 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Non-monetary contributions may apply under special regime if participation and economic motives are met

A family group asks whether transferring shares in a company to their children's businesses can qualify for the LIS special regime. The DGT states that this is possible if a minimum 5% ownership threshold is met and the transaction has valid economic motives.

The question raised

Question posed: Whether the described transaction may qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, and whether valid economic reasons exist.

The DGT's ruling

To apply the special regime for non-monetary contributions, the recipient entity must be a resident in Spain and the contributor must maintain a shareholding of at least 5% in the entity's equity following the transaction. Furthermore, the shares must have been held uninterruptedly during the previous year. The application of the regime is excluded if the primary objective of the transaction is tax fraud or evasion, or if it lacks valid economic reasons beyond the tax advantage. Reasons such as generational relief, family protocol, or risk independence could be considered valid, although their classification depends on the facts.

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