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2018 Wealth Tax

4,2,8,1. Terms and conditions for exemption of holdings in companies

In order for the exemption to be applicable, the following conditions must apply on the date of accrual of the Tax (31 December):


    The company, whether corporate or not, must carry out an economic activity in an effective manner and must not have as its main activity the management of movable or immovable assets.

    An entity will be understood to manage movable or immovable assets and therefore not carry out an economic activity when any of the following conditions are met for more than 90 days of the financial year: 

    That more than half of your assets are constituted by securities or that more than half of your assets are not affected by economic activities. 

    To determine whether there is an economic activity or whether an equity element is affected by it, the provisions of the Personal Income Tax will be complied with. 

    Both the value of the asset and the value of the equity elements not used for economic activities will be that which is derived from the accounting, provided that this faithfully reflects the true equity situation of the company.

    For the purpose of determining the part of the asset that is constituted by unassigned securities or equity elements:

    1. The following values will not be counted:

      • The owners to comply with legal and regulatory obligations.
      • Those that incorporate credit rights arising from contractual relationships established as a result of economic activities.
      • Those owned by securities companies as a result of the exercise of the constituent activity of their purpose.
      • Those who have at least five percent of voting rights and are granted for the purpose of directing and managing the participation provided that, for these purposes, the corresponding organisation of material and personal means is available, and the investee is not included in this section.
    2. Securities and non-economic activities shall not be counted as securities whose acquisition price does not exceed the profit amount distributed by the company, provided that these profits come from economic activities, with the limit of the amount of the profits obtained both in the year itself and in the last 10 years. For these purposes, dividends from the securities referred to in the last paragraph 90 above, when the income obtained by the investee company comes, at least in 100%, from the performance of economic activities. 

    The taxpayer's share in the entity's capital must be at least 5 per 100, counted individually, or from 20 to 100, together with your spouse, ascendants, descendants, or second-degree collateral, your origin is that of kinship in blood, affinity or adoption.

  3. Management FUNCTIONS

    The taxpayer must effectively carry out management functions within the entity.

  4. Remuneration OF 50 OR 100

    For the management functions exercised at the bank, the taxpayer must receive remuneration that represents more than 50 per cent of all their earned income and economic activities, corresponding to 100. 2019

    For this purpose, the income from economic activities whose assets and rights under this tax are exempt will not be counted.

    When the participation in the entity is joint with the spouse, ascendants, descendants, or second-degree collateral, it is already originating kinship in blood, affinity or adoption, management functions and remuneration derived from it, at least one of the persons in the family member must be met, without prejudice to all of them being entitled to the exemption.