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V2666-20 17 August 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · socimi

No need to regularise EDAV tax reliefs if converted to SOCIMI or absorbed

A SOCIMI has queried whether the residential leasing entities (EDAV) in which it invests must repay tax reliefs if they switch to a SOCIMI regime or are absorbed. The DGT has ruled that regularisation will not be required provided the property maintenance periods are respected.

The question raised

1. Whether the entities through which the different forms of investment held by the requesting entity would be carried out shall not be required to regularize the tax benefits enjoyed for Corporate Income Tax purposes until the moment the tax regime of the entities is modified (from EDAV to SOCIMI) or said invested entities are absorbed by the requesting entity.

The DGT's ruling

If EDAV entities change their regime to SOCIMI or are absorbed by the requesting SOCIMI, they shall not be required to regularize the applied tax incentives even if the 3-year lease term has not been met, provided that said term is met subsequently. In the event of a change of regime, the entities must renounce the EDAV regime. In the event of a merger by absorption, the acquiring entity assumes the tax rights and obligations of the transferring entity. For the calculation of the maintenance period of the holdings in the SOCIMI, the period shall be counted from their acquisition or incorporation. For real estate acquired through merger, the SOCIMI maintenance period shall be calculated from the first tax period in which they are included in the assets of the absorbing entity.

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