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Participatory Loan: 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 20 rulings · 2014–2026

Current position

Interest from participatory loans between entities of the same group is not subject to withholding if the generated expense is not tax-deductible for the paying entity. Furthermore, for the returns to be considered exempt dividends, the loan must have been granted after June 20, 2014, and the entities must belong to the same group according to the Commercial Code. The loan must strictly comply with the definition of Royal Decree-Law 7/19.

The DGT's position remains constant in requiring that the distribution does not generate a tax-deductible expense to allow for the exemption or the absence of withholding. A consolidation of specific requirements is observed following the 2014 reform, especially regarding group affiliation and the nature of the expense.

Turning points

  1. V0320-16

    Establishes the three conditions for returns to be considered exempt dividends: loan granted after June 20, 2014, belonging to the same group, and the distribution not generating a tax-deductible expense.

  2. V1956-24

    Specifies the absence of a withholding obligation between group entities as long as the expense is not tax-deductible and the definition of Royal Decree-Law 7/19 is met.

Analysis based on 18 of 20 rulings with a stated position. Updated 25 September 2026.

Rulings on this topic

20
V2152-25 13 Nov 2025

Deductibility of participative loan interest depends on group affiliation

SG de Impuestos sobre las Personas Jurídicas
préstamo participativoretribución de fondos propiosgrupo de sociedadesgastos financierosbeneficio operativo LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11
Affects CompanyExpat · Non-residentIndividual
V1597-24 1 Jul 2024

A non-resident is not liable for Wealth Tax on a foreign participative loan

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
obligación realpréstamo participativosujeto pasivobienes y derechosno residente LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 5.1.bLIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 9.4
Affects CompanyExpat · Non-residentIndividual
V4564-16 24 Oct 2016

Returns on participating loans between group companies may qualify as exempt dividends

SG de Impuestos sobre las Personas Jurídicas
préstamo participativodividendos exentosgrupo de sociedadesretribución de fondos propiosgasto fiscalmente deducible LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 15.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1
Affects CompanyExpat · Non-residentIndividual
V1751-16 20 Apr 2016

Interests of a modified participative loan not considered remuneration of own funds

SG de Impuestos sobre las Personas Jurídicas
préstamo participativonovación modificativaretribución de fondos propiosdeducibilidad de gastosimpuesto sobre sociedades LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 15.aLIS — Ley 27/2014 del Impuesto sobre Sociedades art. 18
Affects CompanyExpat · Non-residentIndividual
V1511-14 9 Jun 2014

Linked participative loans must be valued at market value

SG de Impuestos sobre las Personas Jurídicas
préstamo participativooperación vinculadarentas obtenidas en Españaexenciónvalor normal de mercado TRLIRNR — RDLeg 5/2004 del IRNR art. 13.1.f.2TRLIRNR — RDLeg 5/2004 del IRNR art. 14.1.c
Affects CompanyExpat · Non-residentIndividual
V1074-14 14 Apr 2014

Debt capitalisation via credit offset does not constitute taxable income

SG de Impuestos sobre las Personas Jurídicas
compensación de créditosampliación de capitalpréstamo participativovalor de mercadobase imponible TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 10.3TRLIS — RDLeg 4/2004 (derogado por la Ley 27/2014) art. 15.1
Affects CompanyExpat · Non-residentIndividual

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