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Financial 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 parent entity must exercise effective control over subsidiaries through a holding of more than 50% of the capital or voting rights. Financial, economic, and organizational linkage is required, allowing for the transfer of voting rights to guarantee such financial control. Likewise, entities with their own legal personality, such as foundations, may act as a parent or subsidiary entity if they hold the status of entrepreneur or professional.

The DGT's position remains stable regarding the requirements for control and linkage for the group of entities regime. Recent rulings have specified that the transfer of voting rights can support financial control and have clarified the capacity of foundations to integrate into this regime.

Turning points

  1. V2143-24

    Clarifies that a foundation with the status of entrepreneur or professional may hold the status of a parent entity.

  2. V2444-24

    Establishes that the transfer of voting rights may be sufficient to guarantee the required financial control.

Analysis based on 9 of 11 rulings with a stated position. Updated 28 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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