Doctrine by topic · DGT Observatory

Resident 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 11 rulings · 2015–2026

Current position

To qualify for the exemption of income from dividends or the transfer of holdings in resident entities, a minimum holding of 5% must be maintained uninterruptedly during the year prior to the date on which the profit is due. Since the investee entity is a resident in Spain, it is not necessary to comply with the requirement of taxation abroad. The exempt amount is reduced by 5% for management expenses.

The DGT's position remains constant regarding the application of the exemption for entities resident in Spain. It is confirmed that the Spanish residence of the investee entity waives the requirement of taxation abroad. The evolution shows a consolidation of the criterion regarding the 5% reduction for management expenses in the most recent rulings.

Turning points

  1. V2433-23

    It is established that the exempt amount shall be reduced by 5% for management expenses.

Analysis based on 9 of 11 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

11
V2433-23 7 Sept 2023

Exemption from positive income possible on share sale if conditions met

SG de Impuestos sobre las Personas Jurídicas
exención de renta positivatransmisión de participacionesparticipación significativaentidad residentegastos de gestión LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.3
Affects CompanyExpat · Non-residentIndividual
V2568-21 21 Oct 2021

Exemption possible in transfer of shares under participation and residency requirements

SG de Impuestos sobre las Personas Jurídicas
exención de rentastransmisión de participacionesentidad patrimonialrégimen de exenciónparticipación mínima LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.3
Affects CompanyExpat · Non-residentIndividual
V1816-21 9 Jun 2021

Capital gain from sale of shares may be exempt from corporate tax

SG de Impuestos sobre las Personas Jurídicas
exenciónplusvalíatransmisión de participacionesentidad residenteparticipación significativa LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.3
Affects CompanyExpat · Non-residentIndividual
V1422-15 6 May 2015

Exchange regime applicable if LIS requirements and valid economic reasons met

SG de Impuestos sobre las Personas Jurídicas
canje de valoresrégimen especialderechos de votomotivos económicos válidosreestructuración LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 76.5LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 80.1
Affects CompanyExpat · Non-residentIndividual

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