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V4702-16 8 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · etve

Material and human resources required to qualify for the ETVE regime

The applicant asks whether they possess sufficient resources to fulfill their corporate purpose of managing foreign securities. The DGT rules that to qualify for the ETVE (Holding Company) regime, the entity must organise adequate material and human resources for said activity.

The question raised

Whether the company possesses sufficient human and material resources to carry out the activity inherent to its corporate purpose.

The DGT's ruling

To benefit from the special regime for foreign holding companies (ETVE), the corporate purpose must include the activity of managing and administering securities through the corresponding organization of material and human resources. The existence of these resources is a matter of fact that must be proven before the Tax Administration. Likewise, entities that are considered patrimonial entities may not benefit from this regime.

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