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Cross-border Merger: 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 · 2014–2023

Current position

Cross-border mergers may qualify for the special regime if they are carried out under commercial regulations and meet the requirements of the LIS (Corporate Income Tax Law), provided that there are valid economic reasons and no fraud exists. In non-monetary contributions, the acquiring entity must be a resident in Spain or have a permanent establishment, and the contributing entity must maintain at least 5% of its equity. If the transferring entity is a resident in another State without a permanent establishment in Spain, the assets shall be valued at their market value.

The DGT's position remains constant regarding the application of the special regime under Law 3/2009 and the requirement for valid economic reasons. The doctrine has progressively specified the technical requirements for non-monetary contributions and the valuation of assets in mergers with non-resident entities without a permanent establishment.

Turning points

  1. V3313-23

    Establishes that if the transferring entity is a resident in another State without a permanent establishment in Spain, the assets shall be valued at their market value.

Analysis based on 12 of 13 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

13
V0386-20 19 Feb 2020

Cross-border mergers may qualify for special regime if valid economic reasons exist

SG de Impuestos sobre las Personas Jurídicas
fusión transfronterizasociedad europearégimen especialmotivos económicos válidosneutralidad fiscal LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 76.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 89.2
Affects CompanyExpat · Non-residentIndividual
V1148-16 22 Mar 2016

Proposed cross-border merger deemed economically valid for special Corporate Tax regime

SG de Impuestos sobre las Personas Jurídicas
fusión transfronterizamotivos económicamente válidosrégimen especial de fusionescanje de valoresestablecimiento permanente LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 76.1.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 77.1.a
Affects CompanyExpat · Non-residentIndividual
V0608-14 6 Mar 2014

Potential application of special merger regime and VAT exemption in cross-border mergers

SG de Impuestos sobre las Personas Jurídicas
fusión transfronterizarégimen especial de fusionesbases imponibles negativasconsolidación fiscalunidad económica autónoma TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 26.2TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 67.5
Affects CompanyExpat · Non-residentIndividual

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