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V3215-14 1 December 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · residencia fiscal

Tax consequences of moving fiscal residence abroad: integration of value differences and effects on fiscal consolidation

A company proposes relocating its registered office and effective management headquarters to the United Kingdom. The DGT states that this results in the loss of Spanish fiscal residence and the obligation to integrate the difference between market and accounting values of its assets into its taxable base.

The question raised

1. Whether a change in the registered office of effective management has occurred and, consequently, a change of its tax residence to the United Kingdom.

The DGT's ruling

The transfer of domicile and registered office to a foreign country, accompanied by the corresponding registration in the new commercial register, results in the loss of tax residence in Spain. This requires the inclusion in the tax base of the difference between the fair market value and the book value of the assets that are not assigned to a permanent establishment in Spain. In the event of losses, these are included in the tax year of the change of residence without applying the deferral of intra-group losses. Finally, the entity leaving the tax consolidation group assumes the right to offset the group's negative tax bases in proportion to its share, but these may not be offset if the entity ceases to be a resident in Spain.

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