The ruling of Binding Tax Ruling V0062-26 issued by the Spanish Directorate-General for Taxes (Dirección General de Tributos, “DGT”) clarifies that the contingent portion of the consideration arising from the transfer of shares or equity interests may also benefit from the exemption under Article 21 of Law 27/2014 of 27 November, on the Spanish Corporate […]
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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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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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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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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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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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In previous blog posts, we have dealt with important aspects of Real Estate Investment Trusts (REITs), such as REITs in family business planning, liquidity management in REITs or the tax advantages, possible disadvantages, stock market listing and future expectations of SOCIMIs. In this new entry, we are going to refer to the indirect taxation of […]
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Real Estate Investment Trusts (REITs) are a type of company whose main activity focuses on the acquisition, development and refurbishment of urban real estate for rental purposes. Legally, the legal regime for this type of company is set out in Law 11/2009, of 26 October, which regulates Real Estate Investment Trusts (hereinafter referred to as […]
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In family businesses, it is common to find certain corporate conflicts that can be resolved with the exit of the dissatisfied partner (or partners). In this article, we will explain the tax implications of the exit of a partner from the shareholding of a business entity. This issue is covered by the Capital Companies Act […]
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As we mentioned in a previous post, the value of the shares held must be declared in the Wealth Tax (IP). As a reminder, in that article we also commented on the so-called “family business exemption”, which is established in article 4-Eight-Two of Law 19/1991, of 6 June (LIP). In this new article, we analyse […]
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As is well known, the voluntary period for filing Personal Income Tax (hereinafter, “IRPF”) and Wealth Tax (hereinafter, “IP”) for the 2023 tax year opened on 3 April. This voluntary filing period will end on 1 July. In this blog post, we are going to focus exclusively on the IP and, specifically, on the obligation […]
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