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 be taxed at the tax rate of 0 percent in the Corporate 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. Nor may they apply the regime of deductions and bonuses 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, they become taxable by another different regime in the Corporate Tax before the end of said period:

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

   • In the case of shares or participations, will imply 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 taxation 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 shares in profits distributed by the SOCIMI with respect to 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, IRNR with and without permanent establishment or 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 lien

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

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

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

Said tax will be considered a Corporate Tax fee.

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

will also not be applicable when dividends or shares in profits are received by non-resident entities whose main corporate purpose is the holding of shares in the capital of other REITs or in that of other non-resident entities. residents 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, profit distribution policy, with respect to those partners who:

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

• And they are taxed on said dividends or participation in profits, at least, at the tax rate of 10 percent.

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