{"id":2045,"date":"2019-02-06T12:28:44","date_gmt":"2019-02-06T12:28:44","guid":{"rendered":"http:\/\/www.gmtaxconsultancy.com\/?p=2045"},"modified":"2025-12-05T07:51:17","modified_gmt":"2025-12-05T07:51:17","slug":"sale-of-social-participations-current-taxation","status":"publish","type":"post","link":"https:\/\/gmtaxconsultancy.com\/en\/tax\/sale-of-social-participations-current-taxation\/","title":{"rendered":"Sale of social participations: Current taxation"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.27.4&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>The <strong>sale and purchase of shareholdings<\/strong> in a private limited company is a legal transaction that involves transferring part of the company\u2019s share capital, together with all the rights and obligations attached to it.<\/p>\n<p>This process is influenced by factors such as attractive offers from potential buyers, the macroeconomic situation or disagreements between partners, as well as by the legal and tax particularities surrounding it.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">\u00cdndice contenidos<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/sale-of-social-participations-current-taxation\/#Sale_of_shareholdings_Direct_taxes\" >Sale of shareholdings: Direct taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/sale-of-social-participations-current-taxation\/#Sale_of_shareholdings_Indirect_taxes\" >Sale of shareholdings: Indirect taxes<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Sale_of_shareholdings_Direct_taxes\"><\/span>Sale of shareholdings: Direct taxes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Tax treatment differs depending on who transfers the shareholdings. When the seller is an <strong>individual<\/strong>, any gain is taxed as a capital gain under Personal Income Tax and is subject to a progressive rate.<\/p>\n<p>When the seller is a <strong>company<\/strong>, the amount obtained must be included in the Corporate Income Tax base as the difference between the purchase price and the sale price.<\/p>\n<ul>\n<li><strong>Up to \u20ac6.000,<\/strong> the rate is 19 percent.<\/li>\n<li><strong>From \u20ac6.000 to \u20ac50.000,<\/strong> 21 percent.<\/li>\n<li><strong>Above \u20ac50.000,<\/strong> 23 percent.<\/li>\n<\/ul>\n<p>When a <strong>Private Limited Company<\/strong> is incorporated, the intention is for it to operate over the long term, although various circumstances throughout the company\u2019s life cycle may lead a partner to consider selling their shares.<\/p>\n<p>In <strong>Public Limited Companies<\/strong>, the transfer of shares is unrestricted, but in Private Limited Companies, the Capital Companies Act imposes certain limitations. Unless the Articles of Association provide otherwise, the transfer of shares between partners, spouses, ascendants, descendants and companies within the same group is unrestricted. In other situations, specific rules and limits must be considered.<\/p>\n<p>It is also important to understand the taxation applicable to these transactions, both direct and indirect. The tax implications of selling shareholdings can be decisive for the decision and for the final outcome of the operation. A detailed understanding of these aspects is therefore essential for any partner considering selling their stake in a private limited company.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Sale_of_shareholdings_Indirect_taxes\"><\/span><span id=\"Venta_de_participaciones_sociales_Impuestos_indirectos\" class=\"ez-toc-section\"><\/span>Sale of shareholdings: Indirect taxes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The sale of shareholdings, whether in full or in part, is <strong>exempt from<\/strong> both Transfer Tax and Value Added Tax.<\/p>\n<p>Although the sale of shareholdings is exempt from Transfer Tax and VAT, there are important exceptions. For example, transfers of shares in entities whose assets consist of 50% or more real estate located in Spain are subject to taxation, as are transfers made in exchange for contributions of real estate if at least three years have not passed between the contribution and the transfer.<\/p>\n<ul>\n<li>Transfers of shareholdings in companies, funds and other entities whose assets consist of at least <strong>50%<\/strong> real estate in Spain.<\/li>\n<li>Transfers of shareholdings made in exchange for contributions of real estate for the purposes of incorporating or increasing the share capital of companies, if a minimum period of <strong>3 years<\/strong> has not elapsed between the contribution and the transfer.<\/li>\n<\/ul>\n<p>To prevent fraud, <a href=\"https:\/\/serviciostelematicosext.hacienda.gob.es\/TEAC\/DYCTEA\/criterio.aspx?id=47\/03000\/2021\/00\/0\/1&amp;q=s%3D1%26rs%3D%26rn%3D%26ra%3D%26fd%3D01%2F01%2F2022%26fh%3D03%2F10%2F2022%26u%3D%26n%3D%26p%3D%26c1%3D%26c2%3D%26c3%3D%26tc%3D1%26tr%3D%26tp%3D%26tf%3D%26c%3D2%26pg%3D9\" target=\"_blank\" rel=\"noopener\">Article 37 of the Personal Income Tax Act<\/a> <strong>limits the valuation of the transfer<\/strong>. Its value cannot be lower than:<\/p>\n<ul>\n<li>The net asset value corresponding to the transferred shares, as shown in the balance sheet of the last financial year closed prior to the date on which the tax is due.<\/li>\n<li>The result of capitalising at 20 percent the average of the last three financial years.<\/li>\n<\/ul>\n<p>Given the continuous legislative changes, the number of factors involved and the potentially more advantageous alternatives, it is advisable to consult a <a href=\"https:\/\/gmtaxconsultancy.com\/en\/contact\/\"><strong>tax adviser<\/strong><\/a>.<\/p>\n<p>We will analyse your situation professionally and personally so you can make the best decision.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The sale and purchase of shareholdings in a private limited company is a legal transaction that involves transferring part of the company\u2019s share capital, together with all the rights and obligations attached to it. This process is influenced by factors such as attractive offers from potential buyers, the macroeconomic situation or disagreements between partners, as [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2040,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"The <strong>shareholdings<\/strong> are that parts in which the shareholder equity of a Limited Liability Company is divided. In this way, a part of a company is acquired with all the rights and obligations that this entails.\r\n\r\nIn the case of <strong>wanting to sell the social participations<\/strong>, you have to know well its <strong>taxation<\/strong>. Below we explain the direct and indirect taxes at which these transmissions are subject, since their fiscal consequences can be decisive when carrying out an operation of this type.\r\n<h2>Sale of social participations: indirect taxes<\/h2>\r\nThe sale of shareholdings, either in its entirety or only a part, is <strong>exempt from the payment<\/strong> of both the Transfer Tax (Imputesto sobre Transmisiones Patrimoniales) and the Value Added Tax (Impuesto sobre el Valor A\u00f1adido).\r\n\r\nHowever, to avoid the sale of real estate through the sale of participations avoiding the payment of taxes, the<strong> following transmissions are subject<\/strong>:\r\n<ul>\r\n \t<li>The transmission of social participations of companies, funds and other entities which assets are composed, at least, by <strong>50%<\/strong> for real estate in Spain.<\/li>\r\n \t<li>The transmission of social participations due to contributions of real estate carried out to setting up or increases the capital of companies if between the contribution and the transfer has not passed a minimum period of <strong>3 years<\/strong>.<\/li>\r\n<\/ul>\r\n<h2>Sale of social participations: direct taxes<\/h2>\r\nIf a <strong>commercial company<\/strong> is who sells the participations, it must add the difference between the purchase price and the transmission price to the tax base of the<a href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/corporation-tax-spain-2017\/\"> Corporation Tax<\/a>.\r\n\r\nIf who sells the participations is a <strong>natural person<\/strong>, the taxation would vary according to the benefit obtained:\r\n<ul>\r\n \t<li>Until 6.000 Euros, the tax rate is 19%<\/li>\r\n \t<li>From 6.000 Euros to 50.000 Euros, 21%<\/li>\r\n \t<li>From 50.000 Euros, 23%.<\/li>\r\n<\/ul>\r\nAlso to avoid fraud, the Article 37 of the Personal Income Tax Law (IRPF)<strong> limits the valuation of the transfer<\/strong>. Its value can not be less than:\r\n<ul>\r\n \t<li>The value of the net worth that corresponds to the transferred values resulting from the balance sheet corresponding to the last fiscal year closed prior to the date of accrual of the tax.<\/li>\r\n \t<li>The result to capitalize at 20% the average of the last three exercises.<\/li>\r\n<\/ul>\r\nDue to the continuous changes on in the legislation, the number of factors that must be taken into account and the alternatives that may be more profitable is recommendable to<a href=\"https:\/\/gmtaxconsultancy.com\/es\/contacto\/\"> ask a <strong>tax advisor<\/strong> such as GM Tax<\/a>. We will analyze your case in a professional and personalized way so that you can make the best decision.","_et_gb_content_width":"","footnotes":""},"categories":[52],"tags":[],"class_list":["post-2045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax"],"_links":{"self":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/2045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/comments?post=2045"}],"version-history":[{"count":3,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/2045\/revisions"}],"predecessor-version":[{"id":20548,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/2045\/revisions\/20548"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/media\/2040"}],"wp:attachment":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/media?parent=2045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/categories?post=2045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/tags?post=2045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}