Asset-Holding Company vs Holding Company in Spain: Which Fits Your Situation?
Quick answer: a Spanish patrimonial entity and a holding company solve different problems. An “entidad patrimonial” is a Spanish tax classification linked to the company’s asset composition and whether it carries on an economic activity for Corporate Income Tax purposes. A holding company is a parent company whose main role is to own and manage […]
Spanish Holding Companies in 2026: Article 21, ETVE and Tax Consolidation
Quick answer: a Spanish holding company is not a special legal entity. It is usually an ordinary S.L. or S.A. that owns and manages interests in subsidiaries. Its tax efficiency can come from four different parts of the Spanish Corporate Income Tax Act: Article 21 participation exemption, tax consolidation under Articles 55–75, the tax-neutral reorganisation […]
Holding Company Pros and Cons: When a Parent Structure Actually Makes Sense in 2026
Quick answer: the strongest advantages of a holding company are usually capital reinvestment, risk separation and centralised ownership. A parent company can also make acquisitions, subsidiary sales, investor entry and succession planning easier. The disadvantages are equally real: another entity means more accounting, legal, banking and tax compliance. And if the owner needs to withdraw […]
Family Holding Companies in Spain: Succession, Governance and Tax Rules in 2026
Quick answer: a family holding company is a parent company owned by members of a family that centralises the ownership of one or more operating businesses. Its main functions are usually control, reinvestment, succession and family governance. In Spain, a family holding can also interact with the Article 21 participation exemption, the family-business exemption under […]
Holding Company vs Corporate Group: What’s the Difference in Spain?
Quick answer: a holding company is a parent entity whose role is to own and usually organise interests in other companies. A corporate group, under Spanish company law, exists when one company directly or indirectly controls one or more others under Article 42 of the Commercial Code. So a holding company can sit at the […]