Author Archives: Jesús R. Ballesteros

What is a Tax Group and what are the requirements for setting up a Tax Group between our companies?

The Tax Group can be used as a tool to reduce taxation, especially when one of our companies generates losses, but there are other reasons why it may be in our interest to form a “Tax Group”. Generally, we will use this special regime with some kind of holding structure, although it is not essential, […]

The tax on large fortunes -recently proposed legislation-

Last Tax Hour On Thursday 10 November 2022, the text that the Government intends to approve to create the so-called Tax on Great Fortunes saw the light of day. This proposal has been made through an amendment to the Proposed Law for the establishment of temporary taxes on energy and credit institutions and financial establishments, […]

Revocation of penalties for Form 720

Judgment in Case C-788/19: Tax information obligation in Spain On 27 January 2022, the Court of Justice of the European Union handed down the long-awaited ruling on the penalties imposed by Spain for incorrectly or erroneously declaring the famous Model 720. Once the ruling was published, some doubts arose as to whether or not the […]

Economic motivation in corporate merger transactions

The reason for the corporate reorganisation is debatable if the absorbed company is inactive. Today we bring you a resolution of the Economic Administrative Court of Cataluña, dated 12 February 2018, due to its importance in mergers when a company is absorbed that is not active at the time of the absorption, although it may […]

Special tax regime for impatriates (Beckham Law): Requirements for its application

It is known as the Beckham Law because of the soccer player who was able to apply it and benefit from the tax reduction that this regime entails, but currently professional players are excluded from the possibility of applying this regime.  Let’s see a summary of who can apply the special regime, which basically consists […]

Distinguishing Between Taxes on Property Purchases and Sales: VAT or ITP-AJD

Every day the different Tax Offices[1] are making the application of the regulation more complex, since both want to charge their taxes and they fight among each other to obtain the tax, especially when it is high, as is usually the case with property purchases and sales. At first glance it might seem a trivial […]

Taxation of the Transfer of Company Shares When a Company Constructs a Property

Today we are discussing a very special case that we are sure you’ll find interesting. Suppose that we establish a company to construct one single house, and while we are building it a buyer appears who wants to take over the company, that is to say, they will be directly acquiring the company shares and […]

Taxation of Convictions in Procedural Costs

The true taxation of the costs of judicial procedures is difficult to answer. We must first focus on the question and the concept of costs, since they are considered a credit to the prevailing party. However, this credit is different from the credit that comes from a service leasing contract between the lawyer and the […]

Partial Spin-off of a Company with Properties – Corporate Taxation

Exemption from Corporate Taxation This is a little more “special” than our usual articles, because we are going to attempt to explain one of the corporate restructuring operations which is considered “complex”, but which, if executed well, can save us a significant amount of tax and allow us to re-organise our corporate and personal assets. […]

When a Holding Company Sells Active Companies’ Shares: Article 21 of the Spanish Corporate Tax Law

or “The Art of Investing and Not Paying for Profits” In January 2015, Article 21 of the Spanish Corporate Tax Law (hereafter LIS) changed significantly, a modification which is not very well known at this time, but is key to investing in Spain and not paying tax for selling another company’s shares. We are referring […]