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Entity Control: 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 12 rulings · 2014–2022

Current position

The transfer of securities not admitted to trading on an official secondary market is exempt from IVA (Value Added Tax) and ITPAJD (Transfer Tax on Property Transfers and Legal Acts), unless there is an intent to evade real estate tax. If the presumption of evasion scenarios do not apply, such as obtaining control of an entity with 50% of assets consisting of real estate not used for business activities, the Administration must prove the intention to evade the tax.

The DGT's position remains constant regarding the application of the exemption under article 108 of the LMV (Securities Market Law) and the presumption of evasion through the acquisition of control of entities with majority real estate assets. The evolution shows an increasing emphasis on the burden of proof, indicating that in the absence of the presumption scenarios, the Administration must demonstrate the intent to commit fraud.

Turning points

  1. V3758-15

    Establishes that obtaining control is only one of the presumption scenarios, allowing for taxation if there is an intent to evade even if control is not obtained.

  2. V1946-22

    Specifies that if the presumption of evasion scenarios do not apply, the Administration bears the burden of proving the intent to commit fraud.

Analysis based on 11 of 12 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

12

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