Doctrine by topic · DGT Observatory

Deduction for Investment of Profits: 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 · 2014–2016

Current position

The deduction requires investment in new tangible fixed assets or real estate investments, understood as those put into operation for the first time. The investment is understood to be made on the date it is made available, coinciding with the accounting recognition of the fixed asset. It is not possible to simultaneously apply this deduction and the freedom of depreciation on the same investment.

The DGT's position remains constant in the interpretation of the substantive requirements. It has been reiterated that the novelty of the element depends on its first time being put into operation and that the investment is perfected upon being made available. No changes in doctrine are observed, but rather a confirmation of the novelty requirements and the incompatibility with other benefits.

Turning points

  1. V3133-14

    Defines that real estate must be new elements, understood as those that are used or put into operation for the first time.

  2. V2188-15

    Establishes the incompatibility between the deduction for investment of profits and the application of the freedom of depreciation on the same investment.

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

Rulings on this topic

12
V1745-16 20 Apr 2016

Profit reinvestment tax relief requires assets to be new

SG de Impuestos sobre las Personas Jurídicas
deducción por inversión de beneficiosinversiones inmobiliariasinmovilizado materialelementos nuevoscuota íntegra TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 37TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 108
Affects CompanyExpat · Non-residentIndividual
V2153-15 14 Jul 2015

Major repairs capitalised as fixed assets may qualify for the investment tax credit

SG de Impuestos sobre las Personas Jurídicas
deducción por inversión de beneficiosinmovilizado materialgran reparaciónmayor valor del activoplan general contable TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 10.3TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 37
Affects CompanyExpat · Non-residentIndividual
V0922-15 25 Mar 2015

For the profit reinvestment deduction, properties must be new

SG de Impuestos sobre las Personas Jurídicas
deducción por inversión de beneficiosinmovilizado materialinversiones inmobiliariaselementos nuevoscuota íntegra TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 37TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 108
Affects CompanyExpat · Non-residentIndividual
V0920-15 25 Mar 2015

Profit investment tax relief applies when works are recognised as tangible fixed assets

SG de Impuestos sobre las Personas Jurídicas
deducción por inversión de beneficiosinmovilizado materialinversiones inmobiliariaspuesta a disposicióninversiones en curso TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 37TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 108
Affects CompanyExpat · Non-residentIndividual
V3133-14 19 Nov 2014

Profit reinvestment deduction requires properties to be new assets

SG de Impuestos sobre las Personas Jurídicas
deducción por inversión de beneficiosinmovilizado materialinversiones inmobiliariaselementos nuevosactividades económicas TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 37TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 108
Affects CompanyExpat · Non-residentIndividual
V2406-14 11 Sept 2014

Profit reinvestment deduction may apply to land acquisition

SG de Impuestos sobre las Personas Jurídicas
deducción por inversión de beneficiosinmovilizado materialinversiones inmobiliariaspuesta a disposiciónafectación a actividad económica TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 37TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 108
Affects CompanyExpat · Non-residentIndividual
V0847-14 26 Mar 2014

Eligibility of premises renovation works for the profit reinvestment deduction

SG de Impuestos sobre las Personas Jurídicas
deducción por inversión de beneficiosinmovilizado materialmayor valor del inmovilizadopuesta en condiciones de funcionamientocuota íntegra TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 37LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual

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