Skip to content
Back to index
V2304-20 7 July 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Contribution of a community property share may qualify for special IS regime

A taxpayer asks whether contributing their share in a community of property to a company may qualify for the special IS regime. The DGT responds that this is possible as a special non-cash contribution, provided certain conditions are met and the transaction has valid economic motives.

The question raised

1) Whether the described operation could qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

The contribution of the abstract or ideal share of a community of property is considered a special non-monetary contribution pursuant to Article 87.1 of the LIS. To qualify for the special regime, it must be ensured that the recipient entity is a resident in Spain, that the contributor holds at least 5% of the equity, that the assets are used for business activities, and that accounting is maintained in accordance with the Commercial Code. Furthermore, the operation must not have the primary purpose of tax fraud or evasion, and must correspond to valid economic reasons.

Book your free first meeting