More and more entrepreneurs and family offices are choosing to use a holding company as an investment vehicle.
This type of structure not only allows for the centralization of assets, but also provides significant tax and wealth advantages compared to investing directly as an individual.
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A holding company can invest in almost the same assets as an individual investor, but with greater tax efficiency:
- Shares and stakes in other companies.
- Bonds, investment funds, and financial products.
- Real estate for rental or investment purposes.
- Cryptocurrencies or other digital assets.
Typically, the holding company uses its own funds (contributed by shareholders or generated from profits) to acquire these assets.
All transactions must be properly documented and reflected in the company’s accounting records.
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- Capital gains are taxed under the Corporate Income Tax (25%), not in the shareholder’s personal income tax (IRPF).
- As long as profits remain within the company, the shareholder pays no personal tax.
- This allows for 100% reinvestment of profits, accelerating wealth accumulation.
👉 As an individual, capital gains would be taxed directly under IRPF between 19% and 28%.
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Article 21 of the Spanish Corporate Income Tax Law (LIS) provides a 95% exemption on:
- Dividends received from subsidiaries.
- Capital gains obtained from the sale of shareholdings.
Requirements:
- Hold at least a 5% stake (or an acquisition value exceeding €20 million).
- Maintain the investment for at least one year.
👉 This makes the holding company a powerful tool for managing corporate portfolios.
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- The holding company allows you to decide when and how much to distribute to shareholders.
- Dividends paid out are taxed under IRPF, but deferral provides timing flexibility.
- Profits can be reinvested for years and distributed later in more favorable tax conditions.
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Investing through a holding company facilitates:
- The transfer of shareholdings instead of individual assets (stocks, properties, cryptocurrencies).
- Possible access to the family business regime, which grants significant reductions in the Inheritance and Gift Tax.
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- The holding structure separates personal and business assets.
- Provides greater asset protection and more professional management.
- Enables consolidation and diversification of assets within a single legal entity.
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Investing through a holding company in Spain is a tax-efficient strategy because it:
- Allows for tax deferral and reinvestment without immediate fiscal impact.
- Offers 95% exemptions on dividends and capital gains from subsidiaries.
- Simplifies wealth and succession planning.
- Provides greater control, flexibility, and security in asset management.
💼 For all these reasons, holding companies have become one of the most effective tools for tax and wealth planning among entrepreneurs and families in Spain.
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