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V2627-23 28 September 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · aportación de activos

Requirements to apply fiscal neutrality regime for property leasing business contribution

A taxpayer asks whether they can apply the special asset contribution regime under the Corporate Income Tax Law when contributing their property leasing portfolio to a new company. The DGT responds that this is possible if the requirements for business activity branch and prior allocation are met.

The question raised

Whether the application of the regime for mergers, demergers, and contributions of assets included in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax, is appropriate for the operation of contributing its real estate leasing business assets to a newly created company, and whether the reasons stated can be considered economically valid.

The DGT's ruling

To apply the special regime, the contribution must constitute a branch of activity that is an autonomous economic unit. In the case of real estate leasing, the activity must be economic, which requires having at least one employee with a full-time employment contract. Furthermore, the real estate must have been used for the economic activity for at least three years prior to the contribution. If these requirements are met and the primary purpose of the operation is not tax advantage, the original values and acquisition dates shall be maintained.

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