Doctrine by topic · DGT Observatory

Exemption for Commencement of Activity: 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 10 rulings · 2017–2026

Current position

The exemption for commencement of activity applies to each new economic activity during its first two tax periods. The exemption is not applicable if the activity was already being carried out by another taxpayer with the same equipment and heading, or if, in cases of merger, the absorbing company already performs the same activity. In corporate groups, the exemption for turnover below 1,000,000 euros requires that the group as a whole does not exceed said limit.

The DGT's position remains constant in its interpretation of the exemption. Rulings confirm that the benefit requires a genuinely new activity and not a mere succession of ownership or continuity of activities already existing in absorbing entities or members of a group. No doctrinal changes are observed, but rather a reiteration of the requirements of novelty and grouping limits.

Turning points

  1. V2033-18

    Specifies that a Joint Venture (UTE) may apply for the exemption if the work it performs is different from that of the companies comprising it.

  2. V1355-20

    Clarifies that in merger processes, the absorbing company may apply for the exemption pending from the subsidiary if it carries out an activity different from the absorbed one.

Analysis based on 9 of 10 rulings with a stated position. Updated 29 September 2026.

Rulings on this topic

10
V5434-26 31 Jul 2026

VAT registration required for in-store and home delivery coffee services

SG de Tributos Locales
impuesto sobre actividades económicasepígrafeservicio de alimentaciónconsumo en establecimientoreparto a domicilio TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 78.1TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 82.1.b
Affects CompanyExpat · Non-residentIndividual
V1901-22 2 Sept 2022

No separate census declarations needed per work site for same activity

SG de Tributos
censo de empresariosimpuesto sobre actividades económicasexención por inicio de actividaddeclaración censalcuota mínima municipal RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 3.2RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 4
Affects CompanyExpat · Non-residentIndividual
V1763-22 22 Jul 2022

Exemption not applicable if group turnover exceeds one million euros

SG de Tributos Locales
impuesto sobre actividades económicasexención por cifra de negociosgrupo de sociedadesimporte neto de la cifra de negociosexención por inicio de actividad TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 82.1.bTRLRHL — RDLeg 2/2004 de Haciendas Locales art. 82.1.c
Affects CompanyExpat · Non-residentIndividual
V3064-21 7 Dec 2021

Exemption not granted for new activity if prior activity existed

SG de Tributos Locales
impuesto sobre actividades económicasexención por inicio de actividadexención por cifra de negociossucesión de actividadepígrafe de tarifas TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 78TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 79
Affects CompanyExpat · Non-residentIndividual
V2571-20 28 Jul 2020

Exemption from IAE applies for first two tax periods upon business start

SG de Tributos Locales
exención por inicio de actividadperíodo impositivocuota fijacuota variablepromoción inmobiliaria TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 82.1.bTRLRHL — RDLeg 2/2004 de Haciendas Locales art. 80
Affects CompanyExpat · Non-residentIndividual
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