
Family business in Spain: key characteristics and advantages
Did you know that more than 85% of companies in Spain are family‑owned? This business model not only drives employment and the national economy but
By ruling STS 4594/2023 of November 2, 2023, ECLI:ES:TS:2023:4594, the Litigation Chamber of the Supreme Court has developed how the deductibility of expenses in Corporate Income Tax should be interpreted for remuneration received by directors with executive positions, in accordance with Article 14.1.e), now Article 15.e) of Law 24/2014 on Corporate Income Tax, which regulates the non-deductibility of expenses for “donations and liberalities”.
The SC establishes as jurisprudence, in its tenth legal basis, that the remuneration in these cases cannot be considered as a liberality, since the remuneration is not received as a member of a board of directors but by the employment relationship of real and effective services.
Consequently, the remuneration, not being liberalities, will be deductible for IS, provided that it corresponds to the rendering of real, effective and undisputed services.
This is a ratification of the criterion previously set forth in the judgment of March 30, 2021 (RCA/3454/2019;ES:TS:2021:1233) and more recently in the judgment of June 27, 2023 (appeal 6442/2021, ECLI:ES:TS:2023:3071).
Did you know that more than 85% of companies in Spain are family‑owned? This business model not only drives employment and the national economy but
Do you want to work remotely from another country with legal backing? The Digital Nomad Visa has become one of the most attractive tools in
Do you want to invest in Portugal and obtain European residency? The Golden Visa in Portugal has become one of the most attractive ways to