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V2407-20 14 July 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Requirements for non-monetary contributions and IP exemption under special regime

Two brothers ask whether transferring shares from their companies to a new holding can qualify for the LIS special regime and whether dividends from subsidiaries can support IP exemption. The DGT states that entity B's contribution may meet the criteria if it is not a wealth management company, whereas entity C's does not. Dividends from subsidiaries may support IP exemption.

The DGT's ruling

To apply the special regime for non-monetary contributions, the recipient entity must be a resident in Spain, the contributor must retain at least 5% of the equity, and the entity's main activity cannot be the management of movable or immovable property. In the case of contributions of social shares, these must represent at least 5% of the equity and must have been held uninterruptedly during the previous year. The transaction must not have the primary objective of tax fraud or evasion, but rather valid economic motives.

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