2Central government taxes

2.11 Tax on financial transactions

This is an indirect tax levied on acquisitions for consideration of shares representing the capital stock of Spanish companies, when the following conditions are met:

• The company’ shares are listed on a stock exchange of Spain or another European Union Member State deemed to be a regulated market pursuant to Directive 2014/65/EU or an equivalent third-country market pursuant to article 25.4 of that Directive.
• The stock market capitalization of the company at December 1 of the year preceding the acquisition exceeds €1 billion.

This tax is required irrespective of where the acquisition is carried out and of the residence or the place of establishment of the parties participating in the transaction.

In any event, a series of exemptions are established affecting the primary market and the acquisitions required for the functioning of market infrastructure, regarding corporate restructurings, those performed between companies in the same group, temporary transfers and certain treasury stock purchases. In addition, a new exemption has been introduced for acquisitions made by not-for-profit voluntary social provision entities, occupational pension funds, or welfare mutual insurance companies.