Doctrine by topic · DGT Observatory

Small-Sized Entities: 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 13 rulings · 2014–2024

Current position

Small-sized entities may opt for the accelerated depreciation provided for in Article 103 of the LIS (Corporate Income Tax Law), applying up to twice the maximum straight-line coefficient, but this is a non-mandatory option. The exercise of this option must be carried out within the tax return filing period and does not allow for subsequent rectification. Likewise, to avoid being considered a patrimonial entity, the assets must not consist mostly of securities, subject to legal exceptions.

The DGT's position remains stable regarding the definition of incentives for these entities. The requirements to avoid being considered a patrimonial entity and the conditions for real estate leasing to be considered an economic activity have been specified. Recently, the optional and non-rectifiable nature of accelerated depreciation has been clarified.

Turning points

  1. V2067-16

    Establishes that financial assets resulting from excess cash from undistributed profits are considered assets used for business purposes and do not count as securities for the purpose of determining whether an entity is a patrimonial entity.

  2. V2821-20

    Determines that real estate leasing requires employing at least one person under a full-time employment contract to be considered an economic activity.

  3. V1683-24

    Clarifies that the depreciation under Article 103 of the LIS is a non-mandatory option that must be exercised within the tax return filing period without the possibility of rectification.

Analysis based on 13 of 13 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

13
V0615-21 16 Mar 2021

Purchasing a chainsaw is not a direct expense, but a fixed asset to be depreciated

SG de Impuestos sobre la Renta de las Personas Físicas
estimación directa simplificadainmovilizado materialamortización linealútiles y herramientasentidades de reducida dimensión RIRPF — RD 439/2007, Reglamento del IRPF art. 30.1.ªLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 102
Affects CompanyExpat · Non-residentIndividual
V2637-20 12 Aug 2020

Small-scale companies may opt for the residential leasing regime if requirements are met

SG de Impuestos sobre las Personas Jurídicas
entidades de reducida dimensiónarrendamiento de viviendasactividad económica principalactividades complementariasrégimen especial LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 48LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 49.1
Affects CompanyExpat · Non-residentIndividual
V1909-17 18 Jul 2017

Purchase of an office may qualify as RIC investment

SG de Impuestos sobre la Renta de las Personas Físicas
reserva para inversiones en canariasinversión inicialinmovilizado materialestimación directa simplificadaentidades de reducida dimensión Ley 19/1994RD 1758/2007
Affects CompanyExpat · Non-residentIndividual

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