Holding companies in the family business: when the exemption is lost
If a shareholder sets up a holding and hands it the management, the rest of the family may lose the Wealth Tax exemption. DGT Binding Ruling V0354-26.
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Analysis of tax and corporate law, case law and administrative doctrine for companies, families and non-residents in the Balearic Islands.
Company and shareholder: dividends or salary?
Dividends or salary: a decision that affects personal income tax, corporate income tax and Social Security. No single answer fits every shareholder.
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The DGT clarifies how income is computed in the year a holding company is incorporated for the purposes of the Wealth Tax exemption
The DGT (V0145-26) excludes salaries paid by the subsidiaries before the holding was set up from the 50% test. What it requires and how to document it.
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Buying a Property with Inheritance Tax Debts: The Supreme Court Sets Key Doctrine
The Supreme Court sets doctrine on the charge attaching to properties for Inheritance Tax (ISD): buying a property with inheritance tax debts.
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Spanish Income Tax Return 2025: Everything to Check Before 30 June
Complete guide to the 2025 Spanish tax return: new IRPF rules, common mistakes and key deductions to help you file your income tax return correctly.
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VAT small business exemption: advantages and disadvantages
The debate on the VAT small business exemption scheme, or “franchised VAT”, is back in the media. We analyse its advantages and disadvantages.
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Family Businesses and Real Estate Leasing in Spain: Supreme Court Clarifies the “Employee Requirement”
Spain's Supreme Court (rulings 167/2026 and 186/2026) clarifies the employee requirement for family businesses that lease property. Impact on tax reliefs.
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Balearic Islands increase tax relief thresholds for primary residence acquisitions
Tax incentives for buying a home in the Balearic Islands in 2026: ITP, AJD and ISD on a main residence, new limits by island and requirements.
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Partial Demerger of a Leasing Business: Technical Review of Binding Tax Ruling V1956-25
Analysis of the Spanish tax treatment of partial demergers involving real estate leasing activities and the application of the FEAC neutrality regime.
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Special regime for residential letting companies and the 4% VAT rate: Binding Ruling V1826-25
DGT binding ruling V1826-25: requirements of the special regime for residential letting companies in Spanish Corporate Income Tax and the 4% VAT rate.
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Spanish Supreme Court Clarifies Depreciation Rules for Capital Gains on Rental Properties
The recent Supreme Court Judgment 5416/2025, of 20 November, has represented a significant interpretative shift in the taxation of the sale of properties
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Spanish Court Grants Non-EU/EEA Landlords the Right to Deduct Rental Expenses (National Court Judgment 636/2021, 28 July 2025)
Spain's National Court lets non-EU/EEA landlords deduct rental expenses from Non-Resident Income Tax (IRNR). What it means and how to claim a refund.
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