Clifford Chance

Spanish participation exemption regime now applicable to capital gains on transfers of energy subsidiaries prior to ready-to-build status

4 October 2023

The Spanish General Directorate of Taxes amends its prior criterion issued in 2021 and considers that energy entities (SPVs) prior to ready-to-build status are no longer passive (i.e. not entrepreneurial) entities for tax purposes, making the transfer of shares in such SPVs eligible for a 95% tax exemption if certain requirements are met. 

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