Doctrine by topic · DGT Observatory

Small-scale Entity: 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

Stable position High confidence 19 rulings · 2014–2026

Current position

For an investment in used goods to be considered an initial investment, the entity must hold the status of a small-scale entity. Otherwise, the acquisition of used goods is only eligible if it falls under letter C of section 4 of article 27 of Law 19/1994. The investment must consist of tangible fixed assets used for the activity and located in the Canary Islands.

The DGT maintains a consistent line by linking the consideration of initial investment in used goods to the status of a small-scale entity. Rulings confirm that, if this size requirement is not met, the investment in used assets must mandatory be channeled through letter C of the RIC (Canary Islands Economic Incentive Regime) regulations.

Turning points

  1. V3283-20

    Establishes that used or zero-kilometer vehicles are not initial investments unless the taxpayer is a small-scale entity.

  2. V2117-21

    Specifies that the acquisition of a used property can be an initial investment only if the entity is small-scale.

Analysis based on 19 of 19 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

19
V2395-24 25 Nov 2024

Small entity status does not apply if the group exceeds 10 million euros

SG de Impuestos sobre las Personas Jurídicas
entidad de reducida dimensióncifra de negociosgrupo de sociedadesincentivos fiscalesimporte neto de la cifra de negocios LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 101.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 101.3
Affects CompanyExpat · Non-residentIndividual
V2577-23 26 Sept 2023

Potential to apply accelerated depreciation after reaching €10 million turnover

SG de Impuestos sobre las Personas Jurídicas
entidad de reducida dimensiónlibertad de amortizacióncifra de negociosinmovilizado materialplantilla media LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 101.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 101.4
Affects CompanyExpat · Non-residentIndividual
V3265-14 4 Dec 2014

Companies in a group must aggregate their turnover to determine amortisation limits

SG de Impuestos sobre las Personas Jurídicas
amortización fiscalmente deduciblecifra de negociosgrupo de sociedadesentidad de reducida dimensiónoperaciones intragrupo TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 42TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 108.1
Affects CompanyExpat · Non-residentIndividual

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