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Corporate Holding

The structure that separates your wealth from operational risk, optimizes group taxation and prepares succession without surprises.

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Concept

What is a holding and why does it matter to you?

A holding is a company whose main purpose is owning and managing shares in other group companies. It is not a tool reserved for large corporations. Any business owner with two or more companies, real estate tied to the business, or the need to plan succession should consider this structure.

The holding is created via a non-cash contribution of shares under the special restructuring regime (Chapter VII, Title VII of the Spanish Corporate Tax Act), which allows the operation to be carried out with tax neutrality provided there are valid economic motives.

Without holding

Owner

Company A

Operational risk

Company B

Operational risk

Real estate

Mixed

All wealth exposed to the risk of every business activity

With holding

Owner
FAMILY HOLDING

Company A

Operating

Company B

Operating

Asset-holding

Real estate

Wealth protected, taxation optimized, succession orderly

Advantages

What you gain with a properly designed holding

01

Tax advantage

Dividends flowing up from operating companies to the holding enjoy a 95% exemption in Corporate Tax (Art. 21 LIS). This allows the holding to accumulate profits with minimal taxation, reinvest in new business lines or amortize investments with a very low fiscal burden.

Practical example

An operating company distributes €200,000 in dividends. Without a holding, the individual shareholder pays between 19% and 28% in personal income tax (up to €56,000). With a holding, effective Corporate Tax is 1.25% (only €2,500).

02

Asset protection

The holding acts as a barrier between your personal assets and each business's operational risk. If one operating company gets in trouble, the assets of the other companies and the real estate in the asset-holding company stay protected, ring-fenced in separate compartments.

What it protects

Real estate, shares in other companies, accumulated cash, financial investments and any asset that should not be exposed to day-to-day risk.

03

Succession planning

Transferring a business group without a holding forces you to split shares of every company among the heirs, with the tax cost and complexity that entails. With a holding, you transfer shares of a single entity, and the group structure stays intact.

Andalusia tax relief

Transfer of a family business enjoys a 99% relief in Inheritance Tax, provided the requirements of real economic activity and 5-year holding are met.

04

Corporate advantage

The holding centralizes strategic decision-making for the group: investment policy, profit distribution, intra-group financing and corporate governance. It also lets you professionalize management by separating ownership from leadership — essential when the next generation joins the business.

Corporate governance

Family protocol, shareholders' agreements, rules for family members joining the business and dispute-resolution mechanisms across generations.

05

Labor implications

The existence of a corporate group for labor purposes (Art. 1.2 ET) can trigger joint and several liability if there is a mix of staff, single cash management or abusive unitary direction. A well-designed holding clearly separates each company's labor relations, preventing piercing-the-corporate-veil doctrine.

Risk prevention

Each company keeps its own staff, contracts and collective agreement. The holding does not employ workers from the operating companies nor share executive management.

06

Financial advantage

The holding can act as the group's internal bank, channeling surplus cash from some companies to those that need financing. This reduces bank dependency and improves negotiating power by presenting consolidated financials.

Cash pooling

Centralized treasury, intra-group loans at market rates (related-party documentation, Art. 18 LIS) and surplus optimization.

Real impact

The numbers speak

95%

Exemption on intra-group dividends (Art. 21 LIS)

99%

Inheritance tax relief for family businesses in Andalusia

0%

Taxation in the restructuring under the tax-neutrality regime

100%

Separation of personal assets from operational risk

Simulación visual

Cómo fluye el valor en un holding

Sociedad AHolding

Dividendos

Exención 95% (Art. 21 LIS)

Sociedad BHolding

Dividendos

Exención 95% (Art. 21 LIS)

HoldingReinversión

Beneficio acumulado

Sin tributar en IRPF hasta distribución

Comparativa tributaria: distribución de 200.000 € en dividendos

Sin holding (persona física)

Dividendos brutos200.000 €
IRPF (tipo medio ~24%)-48.000 €
Neto disponible152.000 €

Con holding (sociedad)

Dividendos brutos200.000 €
IS sobre 5% (25% de 10.000 €)-2.500 €
Neto en holding197.500 €

Ahorro: 45.500 € para reinvertir en el grupo

Process

How we build your holding

01

Diagnosis of the current situation

We analyze the existing corporate structure, the group's assets, the labor relationships between companies and each entity's tax position. We identify risks and opportunities.

02

Optimal structure design

We define which type of holding fits best (pure, mixed, asset-holding), how shares are distributed, which assets stay in each company and how corporate governance is set up.

03

Economic substance and valid motives

We document real economic motives for the operation, because the AEAT requires the restructuring to respond to legitimate business reasons (Art. 89.2 LIS). Without this documentation, tax neutrality can be challenged.

04

Execution with tax neutrality

We formalize the non-cash contribution of shares, sign the public deeds, register at the Mercantile Registry and notify the AEAT under the special regime of Chapter VII.

05

Family protocol and shareholders' agreements

If the holding has a family purpose, we design the protocol that governs family members joining the business, dividend policy, succession in management bodies and dispute-resolution mechanisms.

06

Follow-up and compliance

Creating the holding is the start, not the end. We supervise the group's tax obligations (related-party operations, Form 232, transfer pricing), consolidated accounting and compliance with the special regime conditions.

Pitfalls

Mistakes that weaken a holding

No economic substance

The AEAT can apply the anti-abuse clause of Art. 89.2 LIS if the operation lacks valid economic motives beyond tax savings. The holding must have real activity: registered office, resources, decision-making.

Undocumented related-party operations

Intra-group loans, cross-rents and management services must be carried out at market value and documented under Art. 18 LIS. Non-compliance entails penalties of 15% to 100% of the adjustment.

Mixed assets

If group companies share bank accounts, staff or facilities without proper separation, asset protection is lost and the piercing-the-corporate-veil doctrine can apply.

Failure to notify the AEAT

Restructurings under the special regime must be reported to the tax authority. While failure to notify does not invalidate the regime, it creates a presumption of fraud that shifts the burden of proof.

Breach of holding requirements

Inheritance and Gift Tax reliefs require keeping the activity and shares for a minimum period (5 years in Andalusia). Selling or dissolving before the deadline may force you to refund the relief plus interest.

Labor group not properly delimited

If labor courts find a corporate group for labor purposes (mixed staff, single cash management), all companies are jointly liable for labor debts. The structure must prevent this from the outset.

Does your business structure need a holding?

We assess your situation and tell you honestly whether a holding makes sense for your case. No commitment.