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V2467-21 29 September 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · trust

Loan interests and dividends from companies exempt if income already imputed

A beneficiary of a trust asks how loan interests paid to a holding and dividends received should be taxed. The DGT clarifies that income from movable capital is taxed according to its legal holder, and subsequent distributions of already imputed income do not trigger further taxation.

The question raised

Described in the response to the query.

The DGT's ruling

Interest from loans granted by the trust is taxed as income from movable capital in the savings tax base if the consultant is the owner of the funds. The repayment of the loaned capital has no effect on Personal Income Tax (IRPF). The international tax transparency regime does not apply if the joint participation of residents and family members (excluding non-residents) is less than 50%. Income generated before acquiring tax residence in Spain is not taxed in Spain.

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