Inicio Conocimiento jurídico The Directorate-General for Taxation (DGT, its Spanish acronym), in binding consultation V1627-25, of 15 September 2025, rules on the possibility of applying the reduced rate of 15% in Corporation Tax to a newly created company when the economic activity was previously carried out by its partners or by a company owned by them, without any of them holding more than 50% of the capital of the new company and without any legal transfer of the previous business. The question raised focuses on determining whether the new company, owned by three individuals, which carries out the same activity as the partners themselves did and in which they had ceased to operate beforehand, can benefit from the application of the reduced rate of 15%, provided for in Article 29.1 of the Corporation Tax Law (LIS, its Spanish acronym), or whether, on the contrary, any of the grounds for exclusion established in this article apply

The Directorate-General for Taxation (DGT, its Spanish acronym), in binding consultation V1627-25, of 15 September 2025, rules on the possibility of applying the reduced rate of 15% in Corporation Tax to a newly created company when the economic activity was previously carried out by its partners or by a company owned by them, without any of them holding more than 50% of the capital of the new company and without any legal transfer of the previous business. The question raised focuses on determining whether the new company, owned by three individuals, which carries out the same activity as the partners themselves did and in which they had ceased to operate beforehand, can benefit from the application of the reduced rate of 15%, provided for in Article 29.1 of the Corporation Tax Law (LIS, its Spanish acronym), or whether, on the contrary, any of the grounds for exclusion established in this article apply

The DGT concludes that the mere coincidence of the activity previously carried out by the partners and the new company is not sufficient to exclude the tax incentive. For this to be the case, it is necessary (i) that the activity has been previously carried out by a related person or company and has been transferred, by any legal means, to the new company, (ii) that the economic activity has been carried out by a natural person who has a direct or indirect shareholding of more than 50% of the capital of the new company, (iii) that it forms a group in accordance with Article 42 of the Commercial Code, whereby control must be exercised by one company over another, which excludes companies controlled by natural persons and, finally, (iv) that the company is not of a patrimonial nature, according to the actual composition of its assets.

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