Author: Gonzalo Rincón de Pablo
Review of the requirements for applying the reduced 15% corporate income tax rate to newly incorporated entities carrying out the same activities as their shareholders or related entities
In a recent binding ruling, the Spanish Directorate General for Taxes (Dirección General de Tributos, DGT) concluded that the mere coincidence between the activity carried out by a newly incorporated entity and that previously performed by its shareholders or other entities related to those shareholders is not, in itself, sufficient to deny the application of […]
The buyer’s mortgage subrogation in real estate transactions in Spain is not subject to Stamp Duty Tax
The Directorate General of Taxes ratifies its traditional doctrine, resolving the doubts that had arisen after the Supreme Court ruling of 2020 referring to condominium extinctions with express release of co-debtors. The traditional doctrine of the Directorate General of Taxes (DGT) (contained, among others, in its resolutions V1859-05, of 22 September, V1141-09, of 19 May […]
Courts tighten the noose on the reference value of real estate
Some high courts of justice are already raising doubts about the automatic application of the reference value, forcing “pay first and challenge later”. Besides, the Constitutional Court has recently admitted a question of unconstitutionality raised by the High Court of the Andalucian Community, which questions whether this mechanism violates the principles of economic capacity and […]
Housing, at the heart of fiscal policy
Following the measures already approved in Catalonia (which have increased the rates of TPO and AJD mainly in real estate transactions carried out by large holders or of significant amounts), the creation of a Complementary State Tax on the Transfer of Real Estate to non-residents in the European Union, which would amount to 100% of […]
The DGT clarifies new rules on deductible financial expenses in Corporate Tax
These new rules are applicable for fiscal years beginning from 2024 and have been introduced to align Spanish regulations with the ATAD Directive. The deductibility of financial expenses in Corporate Tax (“CIT”) is one of the most controversial aspects in the scope of this tax. The general rule (established in Article 16 of Law 27/2014, […]
Real Estate leasing is an economic activity even when management is outsourced, according to the Directorate General of Taxes
According to the most recent criterion of the Directorate General of Taxes (DGT), real estate leasing can be classified as an economic activity for Corporate Income Tax purposes when managed by specialized experts who have been subcontracted, even if there is not a full-time employee exclusively dedicated to its management, as literally required by law. […]
- 1
- 2