Doctrine by topic · DGT Observatory

Donation of a Company: 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 9 rulings · 2015–2023

Current position

The transfer of companies or holdings under Article 20.6 of Law 29/1987 allows for the estimation of the non-existence of capital gains or losses for the donor. To this end, the assets used for the activity must have been linked to said activity uninterruptedly for at least five years. This benefit is independent of whether the donee applies the reduction in their tax settlement or of regional regulations. The donation of inventory, on the other hand, generates full income according to its market value.

The DGT's position remains constant regarding the non-existence of capital gains from the donation of companies, provided that the five-year requirement of business use is met. The doctrine has specified that this benefit is independent of the application of the reduction by the donee. Recently, it has been clarified that the continuity of the activity does not depend on the ownership of the premises, and a distinction has been made regarding the treatment of inventory.

Turning points

  1. V0115-22

    Establishes that the non-existence of capital gains is independent of whether the donee applies the reduction in their tax settlement or of regional requirements.

  2. V0463-23

    Clarifies that it is irrelevant whether the premises of the activity are not part of the transferred fixed assets for the application of the benefit.

Analysis based on 9 of 9 rulings with a stated position. Updated 30 September 2026.

Rulings on this topic

9
V2644-23 29 Sept 2023

No capital gains tax on business donations if ISD Law requirements are met

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialtransmisión lucrativainmovilizado afectorendimiento de actividad económicaexención LIRPF — Ley 35/2006 del IRPF art. 27LIRPF — Ley 35/2006 del IRPF art. 28.2
Affects CompanyExpat · Non-residentIndividual
V0505-15 9 Feb 2015

Hiring the donor as head or managing pharmacist prevents business gift tax reduction

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
reducción en la base imponiblefunciones de direccióndonación de empresatransmisión inter vivosfarmacéutico titular LISD — Ley 29/1987 de Sucesiones y Donaciones art. 20.6LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4.8
Affects CompanyExpat · Non-residentIndividual

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