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V3879-15 4 December 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · residencia fiscal

Move of registered office and effective management to foreign country results in loss of Spanish tax residency

A consulting entity proposes relocating its registered office and effective management to Luxembourg. The DGT states that this process entails the loss of Spanish tax residency and examines the implications for asset valuation and tax exemptions.

The question raised

Question raised 1. Whether the consulting entity would lose its status as a tax resident in Spain as a consequence of the transfer of its registered office and its seat of effective management to Luxembourg.

The DGT's ruling

The transfer of domicile and effective management seat to Luxembourg, following the cancellation of the registration in the Spanish Mercantile Registry, implies the loss of tax residency status in Spain as it ceases to be an entity incorporated under Spanish legislation. This change of residence determines the termination of the entity's tax period and, consequently, that of the tax group. If the holdings are not attributed to a permanent establishment, Article 19.1 of the LIS applies, and the exemption under Article 21.3 may be applied if the requirements are met. The tax group is not extinguished if the entity maintains its status as a parent company, although the change in its composition must be communicated.

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