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V2689-18 3 October 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención

Wealth Tax exemption may apply to real estate leasing companies

A query was raised regarding whether a real estate leasing company allows for Wealth Tax exemption for a group of family members. The DGT ruled that if the activity is considered economic and the requirements for participation and management are met, the partners are entitled to the exemption.

The question raised

Applicability of the exemption provided for in the Wealth Tax Law

The DGT's ruling

The exemption applies if the entity's primary activity is not the management of real estate assets, understanding that economic activity is carried out if the limits on non-business assets are not met. The kinship group is entitled to the exemption if the minimum participation is achieved jointly and at least one of them performs management functions with the required remuneration. In this case, the non-resident father and his two children meet the requirements to access the benefit.

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