Doctrine by topic · DGT Observatory

Exemption for the Transfer of Shares: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

← DGT Observatory

How the DGT's position has evolved

Settled doctrine High confidence 18 rulings · 2015–2026

Current position

The exemption under Article 21 of the LIS (Corporate Income Tax Law) for the transfer of shares requires compliance with the requirements of participation, residence, and holding period. If the investee entity is a holding company, the exemption only applies to the portion of the income corresponding to an increase in undistributed profits generated during the holding period. In the case of variable price components, the positive income could benefit from the exemption if the legal requirements are met.

The DGT's position remains constant in the application of the exemption, focusing its analysis on the nature of the investee entity. Since 2016, the administration has repeatedly applied the limitation of the exemption when the entity is a holding company, requiring that the income derives from undistributed profits. No changes in criterion are observed, but rather a uniform application of the rule regarding holding companies and economic activity requirements.

Turning points

  1. V1037-16

    Establishes that if the investee entity is a holding company, the exemption will not apply to the portion of the income that does not correspond to an increase in undistributed profits.

  2. V2114-19

    Specifies that for economic activity to exist in the leasing of real estate, at least one person must be employed under a full-time employment contract.

Analysis based on 16 of 18 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

18
V0062-26 15 Jan 2026

Possibility of applying transmission exemption to contingent price

SG de Impuestos sobre las Personas Jurídicas
precio contingenteexención por transmisión de participacionesdevengoentidad patrimonialrentas positivas LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.2
Affects CompanyExpat · Non-residentIndividual
V4145-16 27 Sept 2016

Exemption on transfer of shares does not apply to income other than undistributed profit increases if the entity is a holding company

SG de Impuestos sobre las Personas Jurídicas
entidad patrimonialexención por transmisión de participacionesactividad económicaarrendamiento de inmueblesbeneficios no distribuidos LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.2
Affects CompanyExpat · Non-residentIndividual
V1037-16 15 Mar 2016

Exemption on the transfer of shares applies if the investee is not a holding company

SG de Impuestos sobre las Personas Jurídicas
exención por transmisión de participacionesentidad patrimonialactividad económicaelementos afectosderechos de crédito LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 5.2LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1.a
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

Corporate tax advisoryTalk to the team applying this doctrine daily.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact