The Spanish Tax Agency has strengthened its monitoring of transactions carried out between shareholders and their companies. Loans, property rentals, remuneration, asset transfers and the provision of services are common business transactions and are perfectly legal, provided they comply with tax regulations and are properly documented.

A key requirement is that these transactions are carried out at market value and supported by appropriate documentation. If this is not the case, the tax authorities may adjust the tax position and impose penalties.

Regularly reviewing these transactions and seeking professional advice helps minimise tax risks, avoid future issues and ensure full compliance with current tax obligations.