European economic interest groupings
We inform you about the consequences of BREXIT on the European Economic Interest Groupings.
Article 44 of the LIS regulates the special tax regime applicable to European Economic Interest Groupings governed by Council Regulation (EEC) No 2137/85 of 25 July 1985, which states that only companies and other public or private law entities formed in accordance with the law of a Member State and having their statutory or registered office and central administration in the Community may be members of a European Economic Interest Grouping.
Similarly, where under the law of a Member State a company or other legal entity is not required to have a statutory or registered office, it shall be sufficient for it to be considered a European Economic Interest Grouping if that company or other legal entity has its head office in the Community.
Membership of a European Economic Interest Grouping shall also be open to natural persons pursuing an industrial, commercial, craft, agricultural, professional or other service activity in the Community.
Therefore, as of 1 January 2021, this type of joint venture, formed by Spanish and British entities, could not be considered a European Economic Interest Grouping and would not be subject to the special tax regime for allocating income to the partners established in Article 44 of the LIS.