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V2410-15 29 July 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Foreign entity's address change does not create patrimonial gains or losses under certain conditions

The DGT responds that a change of address of a UK-based foreign entity to Germany does not result in patrimonial variations if neither the legal personality nor the shareholding changes, and that any gain or loss depends on the difference between the acquisition value and the amount received.

The question raised

The taxation of the taxpayer under Personal Income Tax is consulted regarding the change of registered office and the amount paid by the entity.

The DGT's ruling

The change of registered office of the entity does not entail capital gains or losses for the taxpayer, provided that neither the legal personality of the entity nor its ownership percentage is altered. Regarding the amount paid by the company, the capital gain or loss shall be determined by the difference between the acquisition value of the share and the money or market value of the assets received.

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