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Practical Manual for Companies 2023.

Transferred assets giving right to deduction

The assets transferred , likely to generate income that constitutes the basis of this deduction, are the following:

  1. Those that have belonged to tangible or intangible fixed assets or real estate investments related to economic activities that have been in operation for at least one year within the three years prior to the transfer.

  2. Securities representing participation in the capital or equity of all types of entities that grant a stake no less than 5 percent of their capital and that have been held for at least prior to the date of transfer, provided that are not dissolution or liquidation operations of these entities. The calculation of the transferred share will refer to the tax period.

For the purposes of calculating the period of possession, the securities transferred shall be deemed to have been the oldest.

When the transferred securities correspond to entities that have assets not affected by economic activities , according to the balance sheet of the last closed fiscal year, in a percentage greater than 15 percent of the assets, the deduction will not be applied on the part of income obtained in the transfer that corresponds in proportion to the percentage obtained. This percentage will be calculated on the consolidated balance sheet if the securities transferred represent a share in the capital of a parent entity of a group according to the criteria established in article 42 of the Commercial Code, regardless of the residence and the obligation to prepare consolidated annual accounts, which will include multi-group and associated entities in accordance with commercial legislation. However, the taxpayer may determine this percentage based on the market values of the items that make up the balance sheet.

The following shall be considered as non-affected elements direct or indirect participations in the entities referred to in section 4 of article 42 of the RDLeg. 4/2004 and the assets that constitute their assets, if they form part of the group referred to in the previous paragraph. Those elements that meet the conditions established in numbers 1 and 2 of paragraph a) of article 4.Eight.Two of Law 19/1991, of June 6, on the Wealth Tax, will be counted as affected elements.

The following values shall not be deemed to be included among the values mentioned in letter b) above :

  1. That does not grant a share in the share capital or equity.

  2. They are representative of the participation in the share capital or in the equity of entities not resident in Spanish territory whose income cannot be eligible for the exemption established in article 21 of the RDLeg. 4/2004.

  3. They are representative of financial collective investment institutions .

  4. They are representatives of entities whose main activity is the management of movable or immovable assets in the terms provided for in article 4.Eight.Two of Law 19/1991, of June 6, on the Wealth Tax.