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V2165-14 5 August 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · transmisión de valores

Transfer of shares is exempt from VAT or ITPAJD unless intended to evade property taxes

A real estate developer has enquired whether the sale of its shares to a new company is subject to tax. The DGT has ruled that, as a general rule, the transfer of securities is exempt, unless there is evidence of an intention to evade the taxes that would apply to a direct transfer of the real estate assets.

The question raised

Application of Article 108 LMV.

The DGT's ruling

The transfer of securities not admitted to trading on an official secondary market is exempt from VAT or ITPAJD pursuant to Article 108 of the LMV. However, if the intention is to evade the payment of taxes that would otherwise apply to the transfer of real estate, the transaction shall be taxed as a transfer of real estate. The Administration must prove the intent to evade, although there are cases where such intent is presumed if objective requirements regarding control or the contribution of real estate are met.

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