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Economic Linkage: 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 11 rulings · 2016–2026

Current position

The dominant entity must exercise effective control over dependent entities through a holding of more than 50% of the capital or voting rights. The existence of links in financial, economic, and organizational spheres is required. It is possible for a foundation, with its own legal personality and the status of an entrepreneur or professional, to act as a dominant or dependent entity.

The DGT's position remains stable regarding the requirements for control and linkage for the group of entities regime. Recent rulings have specified that foundations may hold the status of a dominant or dependent entity as long as they meet the requirements of legal personality and economic activity.

Turning points

  1. V2143-24

    It is established that a foundation with the status of an entrepreneur or professional can be a dominant entity if it meets the requirements for control and linkage.

  2. V5135-26

    It is confirmed that a foundation can hold the status of a dependent entity within the special regime.

Analysis based on 9 of 11 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

11
V2444-24 4 Dec 2024

Transfer of most voting rights allows application of VAT group regime

SG de Impuestos sobre el Consumo
régimen de grupo de entidadesentidad dominanteentidad dependientederechos de votovinculación financiera LIVA — Ley 37/1992 del IVA art. 163 quinquiesLIVA — Ley 37/1992 del IVA art. 163 nonies
Affects CompanyExpat · Non-residentIndividual
V2146-24 8 Oct 2024

A foundation may act as a dominant entity under the special VAT group regime

SG de Impuestos sobre el Consumo
régimen especial del grupo de entidadesentidad dominanteentidad dependientevinculación financieravinculación económica LIVA — Ley 37/1992 del IVA art. 163 quinquiesLIVA — Ley 37/1992 del IVA art. 163 nonies
Affects CompanyExpat · Non-residentIndividual

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