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V2537-23 21 September 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · obligación real

No subject to Spanish Wealth Tax or ITSGF for indirect holdings in listed Spanish real estate via Mexican entity

A Mexican resident inquired whether they were liable to Spanish Wealth Tax or ITSGF due to indirect ownership of a Spanish real estate society through a Mexican entity. The DGT responds that the Spanish society being listed means the requirement that assets are not traded on organised markets is not met.

The question raised

Liability of the taxpayer for Wealth Tax and the Temporary Solidarity Tax on Large Fortunes by real obligation, due to their participation in the equity capital of entity B.

The DGT's ruling

To be taxed by real obligation, Article 5.One.b) of the LIP requires that the securities representing the participation in equity capital are not traded on organized markets. Given that the Spanish entity is a listed company whose securities are admitted to trading, the conditions of the rule are not met. Therefore, the holdings are not considered to be located in Spanish territory and there is no liability for Wealth Tax or the ITSGF.

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