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V3672-20 29 December 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · aportación no dineraria

Non-cash contributions and share exchange may qualify under LIS special regime

A physical person enquires whether their non-cash contributions and share exchange transactions may benefit from the LIS special regime. The DGT states that this is possible provided the participation, residency requirements are met and the transactions have valid economic motives.

The question raised

Whether the described operation may qualify for the tax regime provided for in Chapter VII of Title VII of Law 27/2014, of November 27, on Corporate Income Tax.

The DGT's ruling

For non-monetary contributions, it is required that the receiving entity be a resident in Spain, that the contributor maintains at least 5% of equity, and that the shares are held uninterruptedly during the previous year. In the exchange of securities, the entity must acquire the majority of voting rights and comply with residency requirements and European Union regulations. Finally, the operation must not have the primary objective of tax fraud or evasion, and must respond to valid economic reasons.

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