Doctrine by topic · DGT Observatory

Dividends in Kind: 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 8 rulings · 2015–2025

Current position

Dividends in kind are considered gross income from movable capital and must be valued at the market value of the assets received. To calculate the gross income, the withholding tax is added to the market value, unless this has been passed on to the shareholder. In the case of withholdings in kind, the withholding tax is determined by increasing the market value by 20 percent.

The DGT's position remains constant in requiring dividends in kind to be valued at their market value to determine the income from movable capital. Recent rulings have specified the calculation of gross income and the classification of the transfer of shares in a subsidiary as a dividend in kind when there is no exchange or capital reduction.

Turning points

  1. V0577-25

    Specifies the calculation of gross income in kind, indicating that the withholding tax must be added to the market value, unless it has been passed on to the shareholder.

Analysis based on 8 of 8 rulings with a stated position. Updated 13 October 2026.

Rulings on this topic

8
V0653-25 10 Apr 2025

Direct transfer of shares to shareholders is not a split and is taxed as dividend

SG de Impuestos sobre las Personas Jurídicas
escisión parcial financieraneutralidad fiscaldividendo en especierendimiento del capital mobiliarioreducción de capital LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.4
Affects CompanyExpat · Non-residentIndividual

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