Category: Insights

Should the representative functions of a director be considered part of his powers or valued as related-party transactions?

The provision of representation services by an administrator for the benefit of the company he/she manages is not considered to be part of the functions inherent to his/her position and, therefore, must be duly remunerated.

Tax residence certificate issued by another State in the sense of the Double Taxation Treaty: the national administrative or judicial authorities cannot question its validity without applying the “tie-breaking” rules provided for in the corresponding Treaty.

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In the last year there have been several pronouncements by judicial organs, among others by the Spanish Supreme Court itself, which have set limits to the actions of the Tax Administration when claiming tax residence in Spain by means of a practice (which, unfortunately, is not uncommon) consisting of questioning, or even ignoring, the content… Continue reading Tax residence certificate issued by another State in the sense of the Double Taxation Treaty: the national administrative or judicial authorities cannot question its validity without applying the “tie-breaking” rules provided for in the corresponding Treaty.

The notarization by a single joint administrator

The certification had the signatures of both joint administrators, duly notarized. However, only one of them signed the deed of sale, in which the agreement of the administrative body was elevated to public deed. Both the General Direction and the Registrar considered that this violated article 1280.5 of the Civil Code, which requires that certain… Continue reading The notarization by a single joint administrator

THE SPECIAL REGIME FOR LISTED REAL ESTATE INVESTMENTREAL ESTATE INVESTMENT LISTED COMPANIES (SOCIMI)

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The corporate purpose of the SOCIMI must be the acquisition and development of urban real estate for lease, holding shares in the capital of other SOCIMIs or in the capital of other entities not resident in Spanish territory, as long as they have the same corporate purpose as the SOCIMI and are subject to a… Continue reading THE SPECIAL REGIME FOR LISTED REAL ESTATE INVESTMENTREAL ESTATE INVESTMENT LISTED COMPANIES (SOCIMI)

The new initiatives and proposal for a European regulation on the control of foreign investments to reinforce economic security in the European Union

In line with the European Economic Security Strategy published in June 2023. The five initiatives approved by the European Commission on January 24, 2024 cover the following objectives: The measures adopted by the Commission are as follows: After analyzing foreign direct investment operations over the past three years, the Commission proposes measures to strengthen the… Continue reading The new initiatives and proposal for a European regulation on the control of foreign investments to reinforce economic security in the European Union

Family business exemption: controversial issues regarding access requirements in light of the latest DGT pronouncements

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Recently, the DGT, in its binding rulings V2752-23 and V2390-23, hasclarified its criteria regarding the fulfillment of certain requirements for accessing the family business exemption. The family business exemption is, to date, one of the main tax benefits for family businesses and, in many cases, has become indispensable for the survival and development of such… Continue reading Family business exemption: controversial issues regarding access requirements in light of the latest DGT pronouncements

Tax Advisor: Tax residence of individuals in spain

The main criteria for determining the tax residence of individuals is the time spent in Spanish territory. The number of days spent in Spanish territory includes both days of physical presence as well as sporadic absences. Given the nature of sporadic absences as an indeterminate legal concept, in order to determine the number of “days… Continue reading Tax Advisor: Tax residence of individuals in spain