Doctrine by topic · DGT Observatory

Substantial Participation: 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 11 rulings · 2014–2024

Current position

Spain's taxing power over the disposal of shares in a Spanish company depends on the existence of a substantial participation or the asset being primarily real estate. A substantial participation is considered to exist when the transferor, alone or with related persons (spouse, ascendants, or descendants), holds at least 25% of the capital or profits in the twelve months prior to the sale.

The DGT's position remains stable regarding the definition of the 25% threshold for substantial participation. The most recent rulings specify the concept of related persons to exclude siblings, limiting it to spouse, ascendants, or descendants.

Turning points

  1. V4968-16

    Establishes that the absence of the mention "directly or indirectly" in a Convention does not prevent the application of the taxing power to indirect ownership.

  2. V0884-24

    Clarifies that siblings are not considered related persons for the calculation of substantial participation according to the Convention Protocol.

Analysis based on 11 of 11 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

11
V4968-16 16 Nov 2016

Spain may tax Norwegian residents' patrimony via indirect ownership of Spanish real estate

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
impuesto sobre el patrimonioconvenio de doble imposiciónparticipación sustancialactivo inmobiliariotitularidad indirecta LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 5.1.bLGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V1951-16 6 May 2016

Dividends from Belarus taxed in Spain except under treaty exceptions

SG de Fiscalidad Internacional
residencia fiscalrenta mundialenajenación de accionesdoble imposiciónconvenio de doble imposición LIRPF — Ley 35/2006 del IRPF art. 2LIRPF — Ley 35/2006 del IRPF art. 9.1
Affects CompanyExpat · Non-residentIndividual
V2530-15 2 Sept 2015

US share sales tax depends on resident's shareholding

SG de Fiscalidad Internacional
ganancias de capitaldoble imposiciónresidencia fiscalenajenación de accionesparticipación sustancial CDI Hispano EstadounidenseLGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V0146-15 19 Jan 2015

Share exchange may qualify for TRLIS special regime if valid economic reasons exist

SG de Impuestos sobre las Personas Jurídicas
canje de valoresrégimen especialganancia patrimonialmotivos económicos válidosparticipación sustancial TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 83.5TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 87.1
Affects CompanyExpat · Non-residentIndividual
V1087-14 14 Apr 2014

Dissolution of a society generates patrimonial gains or losses for shareholders

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialcuota de liquidaciónparticipación sustancialdisolución de sociedadesdoble imposición LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 37.1.e
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

Non-resident taxationTalk to the team applying this doctrine daily.
Modelo 210 CalculatorEstimate the impact on your case in two minutes.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact