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V3554-15 17 November 2015 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · transmisión de valores

Transfer of securities in an entity with real estate used for business activity is exempt from ITPAJD, unless evasion is proven

A Cypriot entity inquired whether the acquisition of shares in a Spanish company, whose assets consist of real estate with tourist facilities, is exempt from tax under the Securities Market Law. The DGT ruled that, as the real estate is used for business activity, the exception to the exemption does not apply, and the transaction remains exempt from ITPAJD.

The question raised

Whether Article 108 of the Securities Market Law would be applicable.

The DGT's ruling

The transfer of securities is exempt from VAT and ITPAJD, unless the intention is to evade real estate tax. This exception does not apply if the real estate is used for business or professional activities. In the case consulted, as the real estate is used for activity, the transfer of securities remains exempt from ITPAJD, without prejudice to the Administration verifying the existence of an intent to evade.

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