Major reform of the Anti-abuse clause concerning transfer of securities transactions involving real estate assets: the long-awaited amendment of article 108 of the Stock Exchange Law

Law 7/2012, October 30th, on tax measures for the prevention of and fight against fraud, includes an important amendment of article 108 of the Stock Exchange Law, which regulates a general exemption of Spanish VAT, Transfer Tax and Stamp Duty for the transfer of securities of companies that hold real estate assets. This reform simplifies and reduces the scope and impact of the anti-abuse provision against transfer of real estate operations through interposed entities provided by art.108 of the Stock Exchange Law nº24/1988.
According to the amendment introduced by Law 7/2012, as from October 31st, 2012, the exception to the said exemption applies to unquoted securities transferred in the secondary market with the purpose to avoid the payment of taxes applicable to the transfer of real estate included in the assets of the company whose securities are transferred.
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