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Organizational 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 10 rulings · 2016–2026

Current position

The group of entities regime requires a dominant entity with effective control over dependents through a shareholding or voting rights participation exceeding 50%. Financial, economic, and organizational linkage is required, with economic and organizational linkage being presumed if financial linkage exists. Entities with their own legal personality, such as foundations acting as entrepreneurs or professionals, may hold the status of dominant or dependent entity.

The DGT's position remains stable regarding the requirements for control and linkage. The evolution focuses on the application of these criteria to subjects with distinct legal personality, such as foundations. The participation requirements and the presumption of economic and organizational linkage have not been modified.

Turning points

  1. V2143-24

    It is confirmed that a foundation with the status of entrepreneur or professional can act as a dominant entity if it meets the control and linkage requirements.

  2. V5135-26

    The possibility is extended for a foundation with the status of entrepreneur or professional to be considered a dependent entity within the regime.

Analysis based on 8 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10
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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