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An overview by Garrigues, Taxand Spain
The Spanish Directorate General for Taxes (DGT) has confirmed that a newly incorporated company may apply the reduced 15% corporate income tax rate even if it carries out the same activity as its shareholders or related entities, provided there has been no legal transfer of the activity.
In Binding Ruling V1627-25, the DGT adopted a strict interpretation of the exclusion rules, confirming that identical activities, shared shareholders (without individual majority control), or the absence of a corporate control relationship do not, by themselves, preclude the incentive. Eligibility ultimately depends on the absence of a formal transfer, a suitable ownership structure, and the company carrying out a genuine economic activity rather than acting as a pure holding entity.
Gonzalo Rincón de Pablo from our Spanish member firm Garrigues has published a more detailed overview of the changes here.
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