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Non-Business Assets: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 11 rulings · 2015–2019

Current position

An entity is considered a patrimonial entity if more than half of its assets, based on the average of quarterly balance sheets, consist of securities or elements not assigned to an economic activity. The mere management and administration of holdings does not constitute an economic activity. Received dividends that form part of treasury or financial investments are considered non-business elements for this calculation.

The DGT's position remains constant regarding the definition of a patrimonial entity based on asset composition. It has been specified that the calculation must be carried out using the average of quarterly balance sheets, and it has been confirmed that treasury and dividends are non-business elements.

Turning points

  1. V5401-16

    Establishes that securities representing at least 5% of the capital and held for one year to manage the holding do not count as securities if there is an organization of material and human resources.

  2. V2262-18

    Introduces the need to determine the composition of assets according to the average of quarterly balance sheets.

Analysis based on 10 of 11 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

11
V3528-19 23 Dec 2019

A company solely managing shareholdings may be classified as a patrimonial entity

SG de Impuestos sobre las Personas Jurídicas
entidad patrimonialactividad económicaactivos financierossociedad holdingactivos no afectos LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.2
Affects CompanyExpat · Non-residentIndividual
V5324-16 15 Dec 2016

Irish ICAVs ineligible for Venture Capital Company exemption regarding Wealth Tax

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
exenciónpatrimonio mobiliarioactividad económicaentidad de inversiónsociedad de capital-riesgo LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4.Ocho.DosLGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual

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