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V4961-16 15 November 2016 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · socimi

SOCIMI regime inapplicable if non-resident entity lacks main object of urban property leasing

A Spanish company asked whether it could opt for the SOCIMI special tax regime being 100% owned by a Belgian (RREC) entity. The DGT replied that the Belgian entity does not meet the requirement of having property leasing as its main object.

The question raised

1. Whether, according to the description of the regime applicable to Belgian RREC, it can be considered that entity A complies with the requirements established in letter b) of paragraph 1 of Article 2 of Law 11/2009 regarding the same corporate purpose as SOCIMIs and subjection to a regime similar to that established for SOCIMIs in terms of a mandatory legal or statutory dividend distribution policy.

The DGT's ruling

In order for a non-listed Spanish company to opt for the SOCIMI regime under Article 2.1.c) of Law 11/2009, it must be wholly owned by a non-resident entity assimilated to a SOCIMI (Art. 2.1.b). In this case, the Belgian entity is not considered assimilated because its primary corporate purpose does not necessarily include the leasing of urban real estate. Therefore, the Spanish company cannot opt for the special SOCIMI regime.

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