Insights, tax and legal news
Family Businesses and Real Estate Leasing in Spain: Supreme Court Clarifies the “Employee Requirement”
The Spanish Supreme Court has recently delivered a landmark interpretation with significant implications for the taxation of family-owned businesses, particularly in relation to the “employee requirement” applicable to real estate leasing activities. In its judgments...
Balearic Islands increase tax relief thresholds for primary residence acquisitions
The Balearic Government has recently approved Order 5/2026 (16 March), introducing a significant update to the regional real estate tax framework. The reform increases the maximum property value eligible for certain tax benefits in Transfer Tax (ITP), Stamp Duty (AJD)...
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.
Special Tax Regime for Companies Letting Residential Property (Spanish CIT) and the 4% VAT Rate
Practical takeaways from Binding Ruling V1826-25 (13 October 2025) The Spanish Directorate-General for Taxes (Dirección General de Tributos, “DGT”) has recently issued Binding Ruling V1826-25 (13 October 2025), providing a detailed analysis of the special Corporate...
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 leased by individuals, particularly with regard to the calculation of capital gains or losses for Personal Income...
Spanish Court Grants Non-EU/EEA Landlords the Right to Deduct Rental Expenses (National Court Judgment 636/2021, 28 July 2025)
Spanish Court Grants Non-EU/EEA Landlords the Right to Deduct Rental Expenses (National Court Judgment 636/2021, 28 July 2025) On 28 July 2025, Spain’s National Court (Audiencia Nacional) issued Judgment No. 636/2021, a landmark decision for international property...