Imputation of income by partners or participants of collective investment institutions established in countries or territories classified as non-cooperative jurisdiction

Regulations: Art. 95 and eighth transitional provision Law IRPF

The Personal Income Tax Law dedicates a section (Section 6) of its Title X and two articles (94 and 95) to the taxation corresponding to the partners or participants of the following collective investment institutions:

Those regulated by Law 35/2003, of November 4, on Collective Investment Institutions.
According to article 1 of Law 35/2003 of November 4, on Collective Investment Institutions:
1. Collective Investment Institutions (IIC, hereinafter) are those whose purpose is to raise funds, assets or rights from the public to manage and invest them in assets, rights, securities or other instruments, whether financial or not, provided that the investor's return is established based on the collective results.
  
  Those activities whose purpose is different from that described in the previous paragraph will not be considered collective investment. Likewise, those entities that do not meet the requirements established in this law will not be able to be established as IICs.
2. The IICs will take the form of an investment company or investment fund.
3. The IICs may be of a financial or non-financial nature, under the terms established in Title III of this law.
Those regulated by Directive 2009/65/EC of the European Parliament and of the Council, of July 13, 2009, other than the above, which are established and domiciled in a Member State of the European Union and registered in the special registry of the National Securities Market Commission, for the purposes of their marketing by entities resident in Spain and
Those established in countries or territories considered non-cooperative jurisdictions.

The taxation corresponding to the partners or participants of the first two collective investment institutions is regulated in article 94 of the Income Law and does not present any differences in treatment with respect to the income subject to imputation to the partners or participants, applying the Personal Income Tax regulations that correspond to each type of income according to its origin or source, except for some special features for listed investment funds and listed index SICAVs and in the application of the deferral regime for reinvestment in SICAVs, the commentary of which is included in the corresponding chapter of this manual.

Unlike the tax incentives established for investment in the previous collective investment institutions (tax deferral regime), for the taxation corresponding to partners or participants in collective investment institutions established in countries or territories considered as non-cooperative jurisdictions, a special tax regime is established in article 95 of the Personal Income Tax Law which aims to do the opposite, to discourage taxpayers who decide to invest in this type of collective investment institutions.

This special tax imputation regime is as follows: