Holding company: protect your assets and reinvest at a 1.25% tax cost

A holding company is a company whose main activity is holding shares in other companies. It is one of the most powerful tax planning and asset protection tools in Spain.

Why create a holding?

• 95% dividend exemption: dividends flowing from the operating company up to the holding are taxed on only 5%, giving an effective rate of 1.25% (5% × 25% corporate tax).
• Asset protection: property, cash and other assets held by the holding are shielded from the risks of the operating business.
• Succession planning: it eases the generational handover of the family business.

When is it worthwhile?

From net profits of €100,000-150,000 a year and significant property assets. At DPL Asesores we design the optimal holding structure for your case.