Doctrine by topic · DGT Observatory

Investee 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

Settled doctrine High confidence 19 rulings · 2014–2026

Current position

The exemption of income from the transfer of holdings requires a minimum holding of 5% maintained uninterruptedly during the previous year. For the calculation of seniority, the period in which the holding was owned by other entities within the same group is included. In Corporate Income Tax (IS), the transfer of assets from an investee to its parent company is considered a distribution of equity and not a donation, generating income for the difference between the market value and the tax value.

The DGT's position remains constant in the application of the exemption under Article 21 of the LIS (Corporate Income Tax Law), reinforcing the continuity of the holding by including entities within the same group. An evolution is observed towards clarifying the nature of operations between parent and investee companies, defining the transfer of assets as a distribution of equity.

Turning points

  1. V2768-21

    Establishes that income from the transfer of holdings in entities with economic activity does not count as non-business assets for determining the management of movable property.

  2. V1989-24

    Specifies that for the calculation of the seniority of the holding, the period in which it was owned by other entities within the same group is taken into account.

  3. V5478-26

    Determines that the transfer of assets from an investee to its parent company is a distribution of equity and not a donation, requiring the transfer to be valued at market value.

Analysis based on 18 of 19 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

19
V0806-26 13 Apr 2026

FCRE investments do not count for IP exemption under compliance rules

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
fondo de capital riesgo europeoexención por actividad empresarialcoeficiente de inversióngestión de patrimonio mobiliarioactividad económica LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 4.Ocho.DosReglamento (UE) 345/2013
Affects CompanyExpat · Non-residentIndividual
V1436-24 14 Jun 2024

Loss from dissolution of foreign entities deductible without restructuring

SG de Impuestos sobre las Personas Jurídicas
renta negativaextinción de entidadreestructuraciónliquidaciónentidad participada LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 17.8LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1
Affects CompanyExpat · Non-residentIndividual
V0415-18 19 Feb 2018

Income from entity liquidation may be exempt if Article 21 LIS requirements are met

SG de Impuestos sobre las Personas Jurídicas
exencióndisolución y liquidaciónentidad participadarenta positivatransmisión de participaciones LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1.b
Affects CompanyExpat · Non-residentIndividual
V2766-16 20 Jun 2016

Corporation Tax exemption may apply to the transfer of shares

SG de Impuestos sobre las Personas Jurídicas
exencióntransmisión de participacionesrenta positivaentidad participadaresidencia fiscal LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1.b
Affects CompanyExpat · Non-residentIndividual
V0136-16 19 Jan 2016

Corporate Tax exemption may apply to the transfer of shareholdings

SG de Impuestos sobre las Personas Jurídicas
exencióntransmisión de participacionesrenta positivasociedad patrimonialsociedad holding LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.3
Affects CompanyExpat · Non-residentIndividual
V2760-15 24 Sept 2015

Entity may benefit from exemption on share transfer if conditions met

SG de Impuestos sobre las Personas Jurídicas
exención de dividendostransmisión de participacionesentidad participadasociedad holdingrenta positiva LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1.b
Affects CompanyExpat · Non-residentIndividual
V1664-14 30 Jun 2014

Deterioro of shareholdings not to be included in taxable base after prior reversal

SG de Impuestos sobre las Personas Jurídicas
pérdidas por deteriororeversión de deteriorodividendosbase imponiblefondos propios TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 12.3TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 14.1.j
Affects CompanyExpat · Non-residentIndividual

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