Exit tax

The Spanish exit tax in Article 95 bis of the PIT Act levies tax on unrealised capital gains in shares and securities when the taxpayer ceases to be a Spanish tax resident. Its rationale is to secure Spanish taxation on the value accrual generated during residence, before the taxpayer leaves the jurisdiction.

The scope tests require at least 10 years of residence in the previous 15, plus one of two quantitative conditions: market value of shares above €4 million, or a participation of more than 25% with market value above €1 million.

On relocation to the European Union or EEA with effective exchange of information, the taxpayer may apply for deferral of the tax during the following 10 years, without guarantees, provided the relevant circumstances are reported. For third countries, guarantees are mandatory.

The interaction with the Beckham regime, double tax treaties and the free movement of capital under the TFEU (CJEU case N, C-470/04) generates litigation. Specific rules apply to shareholders of SOCIMIs (Spanish REITs), ETVEs and tax-transparent entities.

This section covers exit tax planning, recent case law and DGT rulings, comparison with the French, German and Dutch exit tax regimes, and returning-resident situations.