Commercial & Corporate Law

May 11, 2022

Difficulties in enforcing shareholders’ agreements

Shareholders’ agreements regulate the relationship between shareholders outside the channels provided for by law and the articles of association. These shareholders’ agreements are fully valid and effective between the signatory shareholders. The various disputes which are the subject of this ...

December 6, 2021

Director’s compensation continues on the Tax Authorities’ radar

For some time, tax inspectors have been focused on questioning the tax deductibility of compensation to directors. Based on several rulings from the Economical Administrative court, it is again questioned whether compensations are deductible, especially on cases where such compensation ...

June 26, 2021

Dividends from subsidiaries to Parent companies: are they exempt when the parent company is majorly owned directly or indirectly by a non-European member resident?

The National High Court in a ruling dated 31 May 2021 confirms when a company can take advantage of the dividend exemption from subsidiary to parent company. The case consists of a Luxembourg company – fully owned by a Qatar ...

December 2, 2020

Family business and wealth tax: how to face the year end

Family businesses take advantage of certain tax breaks in regards to Wealth Tax (“WT”) and Inheritance and Donations Tax (“IDT”) in order to ease the transfer to future generations as well as its existence throughout time. Such tax breaks in ...

September 24, 2020

Taxation upon contributing mortgaged property to a company

Several appeals ref. (3205/2017, 6263/2017 y 5194/2017) have been ruled recently by the Supreme court in relation to how must a contribution of mortgaged properties to a Spanish company be taxed when the latter takes over the mortgagor’s obligations. The ...

March 27, 2020

Main aspects to be considered by companies amid COVID-19

The outbreak of the new coronavirus, responsible for COVD-19, has put under huge pressure many companies across Spain and the world. In order to mitigate the effects of such virus, the Spanish government has implemented several measures of which we ...

November 29, 2019

How are profit participating loans considered for Wealth tax purposes?

Profit participating loans (PPL) granted to companies are usually defined as a transfer of money to a company by which the lender is rewarded by variable interests rates usually depending on profits. In early anticipation events, such loan is rewarded ...

October 23, 2019

Profit participating loans are considered company’s net worth

The Directorate General for Registers and Notaries (DGRN) on a 19 June 2019 resolves an appeal against a Companies’ registrar decision to not register a shareholders’ decision. The appealing company agreed to transform its company from a public limited company ...

May 25, 2018

Higher Transfer Tax upon Property Purchase

The Supreme Court in a recent ruling dated 23 May 2018, has determined that property valuations for Transfer Tax purposes can not be calculated by simply applying a multiplier to its Cadastral value, shifting the burden of proof to the ...