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V2138-14 4 August 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRNR · socimi

Dividends from SOCIMIs may be exempt from IRNR for EU resident groups

The DGT confirms that dividends from SOCIMIs are exempt from IRNR under Article 14.1.h) of the TRLIRNR if the conditions of the Parent-Subsidiary Directive are met.

The question raised

The issue is to determine the tax regime for the shareholders of N regarding dividends distributed from profits or reserves to which N has applied the special SOCIMI tax regime established by Law 11/2009. In particular, whether the exemption contained in Article 14.1.h) of the Recast Text of the Non-Resident Income Tax Law, approved by Royal Legislative Decree 5/2004 of March 5, will apply when the recipients are parent companies resident in other Member States of the European Union without a permanent establishment in Spain, with a shareholding of at least 5% and assuming one of the forms provided for in the corresponding Directive.

The DGT's ruling

The distribution of dividends from a SOCIMI to parent companies within the European Union may be exempt from Non-Resident Income Tax (IRNR) provided that the requirements of Directive 2011/96/EU are met. These include EU residence, a minimum shareholding of 5%, that both companies are subject to and not exempt from local taxes, that the distribution is not due to liquidation, and that they assume the legal forms provided for. The SOCIMI meets the legal form requirement as it is an entity incorporated under Spanish Law subject to Corporate Income Tax.

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