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V2308-24 7 November 2024 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · carried interest

Carried interest from Guernsey entities: 50% DA 53ª LIRPF regime not applicable

A private equity manager with carried interest channelled through Guernsey entities seeks to know whether, after restructuring payments via a Luxembourg fund, its Spanish resident employees could benefit from the 50% DA 53ª LIRPF integration regime. The DGT concludes that the special economic rights still derive from Guernsey entities (non-cooperative jurisdiction) and that the restructuring is merely a change in payment chain without altering the underlying rights.

The question raised

Question posed: Application of the fifty-third additional provision of the Personal Income Tax Law in the event that the consultant modifies the distribution structure of the carried interest.

The DGT's ruling

The last paragraph of section 3 of Additional Provision 53 of the Personal Income Tax Law excludes the 50% regime when the special economic rights derive directly or indirectly from an entity resident in a non-cooperative jurisdiction. Guernsey holds this classification according to Order HFP/115/2023. A restructuring that interposes a Luxembourg fund in the payment chain without the underlying economic rights leaving the Guernsey structure does not eliminate the indirect origin from a non-cooperative jurisdiction. The favorable regime is not applicable under either of the two structures, and the anti-abuse clauses of Articles 15 and 16 of the General Tax Law may be applicable to the restructuring.

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