Frequently asked questions about Form 289
Skip information indexFinancial institutions required to report. Declarants of model 289
If they comply with all the requirements of section D.8 letter h) of Section VIII of the Annex of Royal Decree 1021/2015, they will be considered to be an Active Non-Financial Entity (NFE). For this purpose, it can be considered that the partial exemption applicable to these foundations and associations represents compliance with the requirement foreseen in the subsection ii) of this section (the previous is also applicable with regards to the subsection ii of section VI.B.4 letter i) of the Annex I of the FATCA Agreement between the USA and Spain).
No. A company whose gross income is attributable mainly to direct investment, reinvestment or negotiation in property is not an Investment Company, regardless of whether it is managed professionally by another company, since property is not considered financial assets.
If, on the other hand, a company (company A) participates in another company (Company B) that invests directly in property, this participation will be considered a financial asset and the gross tax base attributable to this participation must be taken into account for determining if company A complies with the criteria to be considered an Investment Company (Section VIII, section A.6 a) iii) or section A.6 b) of the Annex of Royal Decree 1021/2015).
Yes. The management requirement referred to in the aforementioned precepts also includes the cases in which a company has the discretionary power to manage the assets (fully or partially) of another company but does not manage the company itself.
Yes
The fact that passive income has not been generated from the asset during the corresponding period is not incompatible with the fact that the purpose of the asset is to generate passive income. The importance is that the aim of the asset is to generate passive income. For example, the balance of a current account must be considered an asset that generates passive income or the holding of which has the purpose of generating passive income (interest) even if it does not generate this income.