Doctrine by topic · DGT Observatory

Dependent 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

Refined position High confidence 58 rulings · 2015–2026

Current position

The dominant entity must exercise effective control through a holding of more than 50% of the capital or voting rights and maintain financial, economic, and organizational links. Dependent entities subject to a different tax rate than that of the representative entity cannot be part of the group. Likewise, the status of dominant entity may be held by a foundation if it meets the requirements of legal personality and control.

The DGT's position remains stable regarding the requirements for participation and control, but it has clarified the scope of the regime. It has been clarified that economic inactivity is not a cause for exclusion, and the possibility for foundations to act as dominant entities has been extended. Recently, the exclusion of entities with different tax rate regimes has been delimited.

Turning points

  1. V0646-22

    Clarifies that the lack of economic activity is not a cause for exclusion, so inactive companies must be part of the group if they meet the requirements for dependency.

  2. V2143-24

    Allows a foundation to be a dominant entity as long as it meets the requirements of legal personality, effective control, and linkage.

  3. V5210-26

    Establishes that entities subject to a tax rate different from that of the representative entity are excluded from the tax group.

Analysis based on 49 of 58 rulings with a stated position. Updated 19 September 2026.

Rulings on this topic

24
V5210-26 20 Jul 2026

A cooperativa fiscalmente protegida cannot be a dominant entity in a fiscal group

SG de Impuestos sobre las Personas Jurídicas
entidad dominanteconsolidación fiscaltipo de gravamencooperativa fiscalmente protegidaentidad dependiente LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 29LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 56.2
Affects CompanyExpat · Non-residentIndividual
V5208-26 20 Jul 2026

Cooperative cannot be dominant entity if dependents have different tax treatment

SG de Impuestos sobre las Personas Jurídicas
entidad dominanteconsolidación fiscalgrupo fiscalcooperativa fiscalmente protegidatipo de gravamen LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 29LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 56.2
Affects CompanyExpat · Non-residentIndividual
V5195-26 17 Jul 2026

SA and SB could form a fiscal group if article 58 of the LIS requirements are met

SG de Impuestos sobre las Personas Jurídicas
consolidación fiscalentidad dominanteentidad dependienteparticipación en capitalderechos de voto LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 55LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 58
Affects CompanyExpat · Non-residentIndividual
V0256-26 6 Feb 2026

Change of dominant entity in a fiscal group by acquisition of control

SG de Impuestos sobre las Personas Jurídicas
consolidación fiscalentidad dominanteentidad dependientegrupo fiscalperiodo impositivo LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 58.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 58.2
Affects CompanyExpat · Non-residentIndividual
V2444-24 4 Dec 2024

Transfer of most voting rights allows application of VAT group regime

SG de Impuestos sobre el Consumo
régimen de grupo de entidadesentidad dominanteentidad dependientederechos de votovinculación financiera LIVA — Ley 37/1992 del IVA art. 163 quinquiesLIVA — Ley 37/1992 del IVA art. 163 nonies
Affects CompanyExpat · Non-residentIndividual
V2146-24 8 Oct 2024

A foundation may act as a dominant entity under the special VAT group regime

SG de Impuestos sobre el Consumo
régimen especial del grupo de entidadesentidad dominanteentidad dependientevinculación financieravinculación económica LIVA — Ley 37/1992 del IVA art. 163 quinquiesLIVA — Ley 37/1992 del IVA art. 163 nonies
Affects CompanyExpat · Non-residentIndividual
V0646-22 25 Mar 2022

Inactivity of a subsidiary does not prevent its inclusion in a tax group

SG de Impuestos sobre las Personas Jurídicas
grupo fiscalentidad dominanteentidad dependienteconsolidación fiscalinactividad LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 26LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 58
Affects CompanyExpat · Non-residentIndividual
V3637-20 28 Dec 2020

Loss of shareholding in a subsidiary excludes it from the VAT group regime

SG de Impuestos sobre el Consumo
régimen especial de grupo de entidadesentidad dominanteentidad dependienteperiodo de liquidaciónparticipación mayoritaria LIVA — Ley 37/1992 del IVA art. 163 quinquiesLIVA — Ley 37/1992 del IVA art. 163 sexies
Affects CompanyExpat · Non-residentIndividual
V2151-20 25 Jun 2020

Group entity special regime can be maintained after listing

SG de Impuestos sobre el Consumo
régimen especial de grupo de entidadesentidad dominanteentidad dependientesalida a bolsaparticipación mayoritaria LIVA — Ley 37/1992 del IVA art. 163 quinquiesLIVA — Ley 37/1992 del IVA art. 163 sexies
Affects CompanyExpat · Non-residentIndividual

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