Doctrine by topic · DGT Observatory
How the DGT's position on this topic has evolved, and the rulings it rests on.
Current position
Individual investors may apply the deduction under article 68.1 of the LIRPF (Personal Income Tax Law) if they meet the legal requirements. The direct or indirect participation of the taxpayer, including spouse and relatives up to the second degree, must not exceed 40 percent of the share capital or voting rights. Likewise, it is required that the taxpayer's assets at the end of the period do not exceed the established limits.
The DGT's position on the application of deductions in limited liability companies remains constant in its application of specific requirements. Rulings confirm that the legal form of the company is decisive for access to tax benefits, as seen in the exclusion of housing cooperatives compared to limited liability companies.
Turning points
Establishes that a Special Employment Center in the form of a limited liability company cannot be a beneficiary entity for patronage as it does not meet the legal forms of Law 49/2002.
Specifies that the deduction under article 68.1 of the LIRPF requires the entity to be a Public Limited Company, a Limited Liability Company, or its labor variant, excluding housing cooperatives.
Analysis based on 13 of 13 rulings with a stated position. Updated 27 September 2026.