Doctrine by topic · DGT Observatory

Scrip Dividend: 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

Refined position High confidence 9 rulings · 2015–2024

Current position

Income derived from scrip dividend programs is classified as a dividend, whether through the delivery of shares, the sale of rights on the market, or the receipt of cash. If the shareholder sells the rights to the issuing company itself, the compensation received is classified as a dividend and is subject to withholding tax. In the case of the delivery of fully paid-up shares to natural persons resident in Spain, no income or gain is obtained.

The DGT's position remains stable in classifying this income as dividends to allow for the exemption under Article 21 of the Law on Corporate Income Tax (LIS). The evolution shows greater technical precision by distinguishing between the sale of rights on the market, which does not involve withholding, and the sale of rights to the company itself, which is subject to withholding. Finally, it is clarified that the delivery of free shares does not constitute income for resident natural persons.

Turning points

  1. V1358-20

    Distinguishes the treatment according to the source of funds: if charged against reserves it is a dividend, but if charged against the share premium it is assimilated to a capital reduction.

  2. V1245-24

    Establishes that the sale of rights to the issuing company itself is subject to withholding, unlike the sale of rights on the market.

  3. V1576-24

    Determines that the delivery of fully paid-up shares to natural persons resident in Spain does not involve the obtaining of income or gain.

Analysis based on 9 of 9 rulings with a stated position. Updated 29 September 2026.

Rulings on this topic

9
V2468-20 20 Jul 2020

Script dividends are classified as dividends regardless of the option chosen

SG de Impuestos sobre las Personas Jurídicas
scrip dividendderechos de asignación gratuitaacciones liberadasprima de emisiónretención LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 7LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3
Affects CompanyExpat · Non-residentIndividual
V3717-15 25 Nov 2015

Shareholders may apply double taxation relief on dividends received via scrip dividend

SG de Impuestos sobre las Personas Jurídicas
scrip dividendexención por doble imposiciónacciones liberadasderechos de suscripción preferenteentidad de crédito LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1
Affects CompanyExpat · Non-residentIndividual

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