Doctrine by topic · DGT Observatory

Amortization of Shares: 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 17 rulings · 2016–2023

Current position

In capital reductions involving the amortization of securities, the portion of the refund that does not derive from undistributed profits shall reduce the acquisition value of the shares until they are canceled. If the amount exceeds said value, the excess is taxed as income from movable capital. Undistributed profits are taxed in full as income from movable capital and are subject to withholding. The acquisition value of the remaining shares is distributed proportionally among them.

The DGT maintains a consistent position regarding the treatment of the refund of contributions, distinguishing between the reduction of the acquisition value and taxation as income from movable capital. Throughout the rulings, aspects have been clarified regarding the determination of the acquisition value in cases of gratuitous acquisition and the proportional distribution of said value among the remaining shares following amortization.

Turning points

  1. V0073-19

    Clarifies that the acquisition value of shares obtained gratuitously is composed of the value from inheritances or donations plus investments, improvements, and inherent expenses.

  2. V1759-23

    Establishes that the acquisition value is distributed proportionally among the remaining homogeneous securities, or is classified as a capital loss if there are no securities to distribute.

Analysis based on 17 of 17 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

17
V2987-20 5 Oct 2020

Redemption of all shares held by a shareholder is taxed as a capital gain or loss

SG de Impuestos sobre la Renta de las Personas Físicas
amortización de participacionesseparación de sociosganancia o pérdida patrimonialreducción de capitalvalor de mercado LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.3.a)
Affects CompanyExpat · Non-residentIndividual
V0703-18 15 Mar 2018

Sale of shares to the company for redemption is taxed as a capital gain or loss

SG de Impuestos sobre la Renta de las Personas Físicas
amortización de participacionesreducción de capitalseparación de sociosganancia patrimonialvalor de mercado LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.3.a)
Affects CompanyExpat · Non-residentIndividual
V1344-17 1 Jun 2017

Family business tax reduction lost if share value is not maintained

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
reducción por empresa familiaradquisición mortis causaamortización de participacionesmantenimiento de valorreinversión LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.2.cLIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4
Affects CompanyExpat · Non-residentIndividual
V3522-16 26 Jul 2016

Acquisition of own shares to settle a debt is treated as a capital gain or loss

SG de Impuestos sobre la Renta de las Personas Físicas
ganancias o pérdidas patrimonialesadjudicación judicialreducción de capitaldevolución de aportacionesamortización de participaciones LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 33.3.a
Affects CompanyExpat · Non-residentIndividual

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