New company within a corporate group: when does th […] New company within a corporate group: when does the 15% reduced rate not apply?
Category: Tax
For newly incorporated companies, a reduced rate of 15% applies, which has become established as one of the key tax incentives when starting new economic activities. Its practical application is giving rise to disputes with the tax authorities, particularly in cases where the company is created within a pre-existing business structure. In this context, the […]
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The letting of real estate and economic activity i […] The letting of real estate and economic activity in the tax reliefs for family businesses
The letting of real estate as the source of conflict in tax reliefs Under tax legislation, the letting of real estate is the only activity for which it is required to employ a person under a full-time employment contract in order for it to be regarded as an economic activity. Irrespective of the implications that […]
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Double Taxation Agreements after BEPS: the impact […] Double Taxation Agreements after BEPS: the impact of the MLI, the PPT clause and the beneficial owner
Historically, Double Taxation Agreements (DTAs) have constituted a key instrument for structuring and planning international transactions. Thanks to the network of DTAs, entities and multinational groups are able to operate while minimising or eliminating instances of double taxation in cross-border transactions, such as payments of dividends, interest or royalties, among other items. That said, it […]
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The taxation of trusts in Spain: legal recognition […] The taxation of trusts in Spain: legal recognition and tax implications
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In an increasingly globalised world, transnational legal and tax structures have become common instruments in international wealth planning. Among them, the trust stands out for its flexibility and utility in asset management, succession planning and family wealth structuring. However, its tax treatment in Spain presents significant challenges, owing to the absence of formal recognition within […]
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Vehicles for investment in art: foundations and as […] Vehicles for investment in art: foundations and associations vs personal assets
Investment in art increasingly gives rise to legal and tax considerations where a collection ceases to be merely a matter of personal interest and becomes part of a broader wealth planning strategy. March transforms Madrid into a veritable hub of the art market: ARCO serving as an international barometer and, alongside it, fairs such as […]
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Directors’ remuneration: key legal considerations […] Directors’ remuneration: key legal considerations and risks
The remuneration of company directors is a recurring issue in Spanish corporate law, owing to the constant evolution it has undergone as a result of the various interpretations adopted by the Supreme Court. For unlisted companies, which constitute the majority of the Spanish business fabric, the existence of an improperly structured remuneration system may give […]
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Unjustified capital gains: recent case law of the […] Unjustified capital gains: recent case law of the Supreme Court
Unjustified Capital Gains constitute one of the most common grounds for adjustment in Personal Income Tax (IRPF) where the Tax Authorities identify undeclared assets or rights in the course of a review or inspection procedure. Throughout this post, we shall examine the most recent judgments of 27 November 2025 delivered by the Supreme Court (appeals […]
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Change of tax residence and exit tax for individua […] Change of tax residence and exit tax for individuals
In today’s world, it is increasingly common for individuals involved in business projects or holding significant financial assets to change their tax residence. As a result, taxpayers who are tax residents in Spain may lose that status due to long-term or even permanent relocations to other jurisdictions, whether in search of more favourable tax regimes […]
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Free depreciation for renewable energy investments […] Free depreciation for renewable energy investments: Royal Decree-Law 16/2025 of 23 December
In recent financial years, taxation related to investments in the energy transition has gained increasing relevance as a corporate income tax planning tool. Among the available incentives, free depreciation applicable to certain investments that use energy from renewable sources stands out for its direct impact on companies’ tax results, as it allows a significant acceleration […]
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The application of Article 37.1.b) of the Personal […] The application of Article 37.1.b) of the Personal Income Tax Act to the transfer of shares or equity interests in unlis […]
The transfer of shares or equity interests in unlisted entities is a common transaction in closely held companies and in businesses with a strong family character. Despite its frequent occurrence, this type of transaction entails significant tax complexities arising from the application of Article 37.1.b) of Law 35/2006, of 28 November, on Personal Income Tax […]
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Artistic legacy: how to manage the future of a col […] Artistic legacy: how to manage the future of a collection
Receiving a legacy of works of art can be an extraordinary cultural opportunity, but also a multidisciplinary challenge that brings together legal, tax, ethical and conservation considerations. Far from being a mere act of asset transfer, managing an artistic legacy involves preserving the donor’s memory, safeguarding the integrity of the pieces and deciding on their […]
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International tax transparency: an increasingly re […] International tax transparency: an increasingly relevant regime in the face of growing profit relocation
In the current environment where business groups can operate simultaneously in multiple jurisdictions, structuring their investments in many cases through holding entities located abroad, the correct application of international taxation has become a critical factor for the prevention of unassessed risks. A mechanism that is currently unfamiliar to Spanish taxpayers, although with a significant potential […]
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Taxation of the seller in the sale of a company: i […] Taxation of the seller in the sale of a company: individual shareholder vs holding company shareholder
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Taxation-wise, the sale of a company can be one of the most significant decisions in an entrepreneur’s business life. It is not merely the completion of a corporate transaction, but rather the culmination of years of effort, strategy, and value creation. For this reason, the seller’s tax position in the transaction is also crucial. In […]
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Murcia High Court: The mass cloning of computer eq […] Murcia High Court: The mass cloning of computer equipment may constitute a violation of fundamental rights
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Violation of fundamental rights in inspection actions on computer equipment The Murcia High Court has issued a ruling on 16 October 2025, in a case handled by our firm, which represents a significant milestone in the judicial oversight of inspection actions when they affect the entire contents of computer equipment. The Court declares that the […]
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The tax regime of ETVEs: a strategic tool in the i […] The tax regime of ETVEs: a strategic tool in the international tax planning of corporate groups
A Foreign Securities Holding Company (hereinafter, ETVE by its Spanish acronym) is a Spanish company whose principal purpose is the management and administration of shareholdings in non-resident entities. The main appeal of these entities lies in their favourable tax treatment, since, provided certain requirements are met, dividends and capital gains derived from their foreign subsidiaries […]
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Corporate groups and the tax consolidation alterna […] Corporate groups and the tax consolidation alternative
Tax consolidation has become a key tool for many corporate groups which, as they have grown and diversified their activities across different companies, now structure their organisation through a parent company acting as the group’s holding entity. This is the structure commonly used by well-established family groups, and it can be achieved through corporate reorganisation […]
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Contributions to family holdings: current situatio […] Contributions to family holdings: current situation and unresolved issues
Family holdings have become one of the most effective tools for organising and protecting the assets of family businesses. This type of structure not only helps maintain market competitiveness but also ensures business continuity across generations, offering a more orderly and efficient framework for managing a corporate group. To achieve this objective, the creation of […]
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Real estate leasing as an economic activity: updat […] Real estate leasing as an economic activity: update on recent case law
As already discussed in several previous posts, and in particular in the post authored by my colleague Hipólit Borrás i Cantó, which we now update in light of recent case law, the tax classification of real estate leasing remains a crucial issue for family businesses and asset-holding companies in Spain. As previously noted (without intending […]
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Tax equality for non-EU taxpayers: deduction of ex […] Tax equality for non-EU taxpayers: deduction of expenses in the non-resident income tax (IRNR) on Spanish rental income
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Non-EU taxpayers who earn income from renting property in Spain have been at a disadvantage for years compared to EU residents. While the latter could deduct expenses related to the lease—such as mortgage interest, property tax, or repairs—non-EU residents were required to pay tax on gross income under the Non-Resident Income Tax (IRNR). This situation […]
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Cryptocurrencies and transfer tax (ITP): a new fro […] Cryptocurrencies and transfer tax (ITP): a new front in Spanish taxation
The interpretation of the Directorate-General for Taxation (DGT) Cryptocurrencies and ITP have become a central debate in the Spanish tax system. The expansion of crypto-assets has tested the limits of tax and legal frameworks. In Spain, the DGT — according to binding consultation V0935-25 — is consolidating an interpretation that directly affects the use of […]
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New corporate tax rates: key aspects every company […] New corporate tax rates: key aspects every company should know from 2025
Legal framework of corporate tax rates Law 27/2014 of 27 November on Corporate Income Tax (LIS) has introduced a major reform of corporate taxation in Spain. One of the central elements of this reform is found in Article 29, which regulates the tax rates applicable to taxpayers. In addition, Transitional Provision 44 establishes a temporary […]
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Retroactive application of R&D tax deductions […] Retroactive application of R&D tax deductions: new TEAC ruling
Change of DGT approach: situation before the new TEAC ruling In the field of R&D tax credits under Corporate Income Tax (CIT), the retroactive application of R&D tax deductions has been the subject of intense legal debate in recent years due to a change of position by the Directorate-General for Taxation (DGT), which directly affected […]
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The capitalisation reserve deduction under Corpora […] The capitalisation reserve deduction under Corporate Income Tax: updates, practical challenges, and recommendations
What is the capitalisation reserve deduction in Corporate Income Tax? The capitalisation reserve deduction is a tax incentive that allows Corporate Income Tax (CIT) payers to reduce their taxable base by a percentage of the increase in their equity, provided that two main conditions are met: This incentive is regulated under Article 25 of Law […]
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Can the Spanish tax authority search your home for […] Can the Spanish tax authority search your home for artworks? What you need to know
Inviolability of the home and legal requirements for inspections targeting artworks Is it possible for the Spanish Tax Agency (Agencia Tributaria), together with Customs Surveillance (Vigilancia Aduanera), to visit your home in search of information regarding artworks? It can happen—but only under certain conditions. The inviolability of the home is protected under Article 18.2 of […]
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Exit tax for companies: tax implications of intern […] Exit tax for companies: tax implications of international relocations of residence or assets
In an increasingly globalised environment, it is common for companies to structure their corporate groups to optimise tax, operational, regulatory, and commercial efficiency. Within this context, we are seeing a growing number of cases where companies relocate their tax residence or transfer significant assets to more favourable tax jurisdictions, or for purely strategic reasons. However, […]
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Finance leasing, commonly known as leasing, has become a strategic financial tool for businesses looking to acquire capital goods without compromising their liquidity. This instrument not only facilitates financing but also offers significant tax benefits—particularly in the real estate sector. What is a Finance Lease? A finance lease is a contractual arrangement whereby a financial […]
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Limitations on the use of tax loss carryforwards f […] Limitations on the use of tax loss carryforwards following a corporate acquisition
One of the tools available to companies for optimising their tax burden is the use of tax loss carryforwards. However, this mechanism cannot always be applied. Article 26.4 of Law 27/2014 of 27 November on Corporation Tax (hereinafter, the “CIT Law”) sets out a series of restrictions that prevent the utilisation of tax loss carryforwards […]
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Foundations: a tool for the promotion, investment […] Foundations: a tool for the promotion, investment and protection of art
Foundations have become a well-established legal vehicle within the art and culture ecosystem, aimed at the preservation, promotion and dissemination of artistic heritage. At Devesa, we created a dedicated Art Law practice within our legal and tax advisory services to support collectors, families with artistic assets, investors and institutions in the creation, management and legal […]
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The solidarity tax on large fortunes and its inter […] The solidarity tax on large fortunes and its interaction with the wealth tax
We are currently in the key period for filing Spain’s 2024 Income Tax and Wealth Tax (Impuesto sobre el Patrimonio, or IP) returns, which are due by 30 June. Since the 2022 tax year, however, a new companion tax has joined the calendar: the Solidarity Tax on Large Fortunes (Impuesto de Solidaridad de las Grandes […]
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Loans from a company to its shareholder: how to pr […] Loans from a company to its shareholder: how to prevent HMRC from treating them as a benefit
Loans between a company and its shareholders: a common practice In the day-to-day operations of many companies, especially family businesses or those with a small number of shareholders, it is common to see cash movements between the company and its shareholders. Among these, loans granted by the company to its shareholders are relatively frequent. However, […]
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