8.1.3.1.1. Imputation of income

Without prejudice to the provisions of international treaties and agreements that have become part of our internal legal system, taxpayers resident in Spain must impute in their general tax base, regardless of the imputed income, the positive income obtained by an entity not resident in Spanish territory in which they participate, when the following circumstances occur:

1. Control over the non-resident entity

   The taxpayer's participation in the entity on the closing date of the financial year, alone or jointly with relatives up to the second degree or with related entities, must be equal to or greater than 50% of the capital, equity, results or voting rights.

   The determination of the degree of participation will be carried out in accordance with the provisions of article 91.1.a) of the Personal Income Tax Law.

2. Low taxation

   The tax of an identical or analogous nature to the Corporate Tax paid by the non-resident entity in which the income is included must be less than 75% of that which would correspond to the same income in accordance with the Corporate Tax regulations.

3. Income to be imputed

   Only positive income belonging to one of the classes provided for in article 91 of the Personal Income Tax Law will be imputed.

The imputation of income under this regime does not apply when the entity not resident in Spanish territory is resident in another member state of the European Union, provided that the taxpayer proves that its constitution and operation respond to valid economic reasons and that it carries out economic activities.

It will also not apply when it is a collective investment institution regulated by Directive 2009/65/EC.