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Practical Handbook for Companies 2021

Exceptions to the application of limiting the deductibility of financial expenses

The limitation on the deductibility of net financial expenses shall not apply:

  • To credit institutions and insurers.

    For these purposes, those entities whose voting rights fully correspond, directly or indirectly, to them and whose activity consists of issuing and trading financial instruments to strengthen regulatory capital and the financing of these entities shall be treated as credit institutions.

    The same treatment will also apply to the mortgage securitisation funds, regulated in Law 19/1992, of 7 July 1992, on the Regime of Real Estate Investment Companies and Funds and on Mortgage Securitisation Funds, and the asset securitisation funds referred to in Additional Provision Five.2 of Law 3/1994, of 14 April 1994, which adapts Spanish legislation on credit to the Second Banking Coordination Directive and introduces other amendments relating to the financial system.

  • In the tax period in which the entity is wound up, unless the entity is wound up as a result of a restructuring operation.