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Royalties: 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

Royalties for technology transfer are subject to the reduced rate of 10% if they are necessary for the development of an agricultural, forestry, or livestock activity and are paid to its owner. The classification under IRPF (Personal Income Tax) depends on authorship: if the owner is the author, they are considered income from professional activities; if the ownership has been acquired from a third party, they are considered income from movable capital. Management or auditing services regarding licenses do not qualify for the reduced rate.

The DGT's position remains constant regarding the distinction between the nature of the income based on the authorship of the asset and the necessity requirements for the reduced rate. The requirement that the technology transfer must improve the conditions of the activity to apply the 10% rate has been maintained. No changes in criterion are observed, but rather a reiteration of the distinction between professional activities and movable capital.

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

Rulings on this topic

13

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