Special tax system for companies in the Corporation Tax system

Regulation: Article 9 Law 11/2009

The SOCIMI that opt for the application of this special tax regime will be governed by the provisions of the Corporate Tax Law, without prejudice to the special provisions provided for in Law 11/2009:

1. They will pay taxes at the rate of 0 percent in corporate income tax.

2. In the event that they generate negative tax bases , they will not be able to apply the provisions of article 26 of the LIS .

3. They may not apply the deductions and bonuses regime established in Chapters II, III and IV of Title VI of the LIS.

4. In the event that fails to comply with the 3-year permanence requirement, referred to in article 3.3 of Law 11/2009 or when, whatever the cause, the company is taxed under a different regime in the Corporate Tax before the end of said period:

   • In the case of properties, will entail the taxation of all income generated by said properties in all tax periods in which this special regime would have been applicable, in accordance with the general regime and the general tax rate of the Corporate Tax.

   • In the case of shares or interests, will entail the taxation of that part of the income generated on the occasion of the transfer, in accordance with the general regime and the general rate of corporate tax.

   All these regularizations will be carried out in accordance with the provisions of article 125.3 of the LIS.

5. The dividends or profit shares distributed by the SOCIMI for which the special regime provided for these entities has been applied will be subject to withholding or payment on account, when the recipient is a taxpayer of the Corporate Tax, of the IRNR with and without a permanent establishment or of the IRPF .

   There will be no obligation to withhold when the recipient is an entity that meets the requirements for the application of Law 11/2009.

Special tax

SOCIMIs will be taxed at a special tax rate of 19 percent on the full amount of dividends or profit shares distributed to partners when:

• The participation in the share capital of the entity is equal to or greater than 5 percent and

• Such dividends at the headquarters of its partners are exempt or taxed at a rate lower than 10 percent.

This tax will be considered a corporate tax rate.

This tax will not apply when the partner receiving the dividend is an entity to which Law 11/2009 applies.

will also not apply when dividends or profit shares are received by non-resident entities whose main corporate purpose is the holding of shares in the capital of other SOCIMIs or in that of other entities not resident in Spanish territory that have the same corporate purpose as those and that are subject to a regime similar to that established for SOCIMIs in terms of the mandatory, legal or statutory policy for the distribution of profits, with respect to those partners who:

• They have a stake equal to or greater than 5 percent in the share capital of those companies.

• And pay taxes on said dividends or profit shares at least at the tax rate of 10 percent.

The lien will accrue on the day of the agreement on the distribution of profits by the general meeting of shareholders or competent body.