Reexamination of the relationship theory and the personal income tax exemption for compensation received by directors upon termination of their senior management employment relationship without agreement with the company

The Central Economic-Administrative Court (TEAC) changes its criteria and establishes the need to assess the senior management employment relationship of the directors of companies and consequently apply the personal income tax exemption for compensation received due to the termination or dismissal of the senior management employment relationship. In the Resolution dated 18 December 2023, the […]

Applicability of restrictions on indirect transfers of equity interests

According to the Barcelona Provincial Court, unless thereare tie-in agreements, it is not possible to extend to acompany the restrictions to the transfer provided in thebylaws of another company in which it has an interest. The Judgment of the Provincial Court of Barcelona The judgment of the 15th Section of the Barcelona Provincial Court No. […]

An indefinite shareholders’ agreement

The Provincial Court rules on the validity of a clause in a shareholders’ agreement that establishes its duration until the members of the agreement acquire all of the share capital of the shares of three commercial entities. In judgment 361/2023 dated July 28, 2023, section 6 of the Provincial Court of Valencia analyzes the clause […]

Related-party transactions and directors’ duty of loyalty

Directors have a duty to act in good faith and in the best interests of the company, and must therefore refrain from participating in the deliberation and voting on resolutions and decisions that give rise to a direct or indirect conflict of interest. In judgment 504/2023 dated 29 November 2023, the Barcelona Provincial Court heard […]

End of the Portuguese Non-Habitual Residents Regime (“RNH”)

On the November 29th, 2023, the Portuguese Parliament have approved the Portuguese Budget Bill for 2024 (the “Budget 2024”). After one and a half month of discussions and a lot of uncertainty, it was confirmed that the current special tax regime for Non-Habitual Residents (the “NHR”) will have some relevant changes. To clarify, we will […]