The Spanish Economic Administrative Court (TEAC) has just issued a resolution (number 185/2017, and dated 8/10/2019) related to the NRIT exemption of the interests paid by a Spanish company to a Dutch entity, applying the criteria of the EU Directive 2003/49/CE and, mainly, the recent EU jurisprudence (T Danmark, cases C-116/16 and C-117/16), to refuse such exemption when the effective beneficiary of the interests is non tax resident in the EU.

The case analysed by the TEAC is a 13.9M€ loan granted to a Spanish company (X, SL) by its partner (99,97%) ZHOLDING BV, from the Netherlands, but the money is transferred by its direct (100% ZHOLDING NV, from Curaçao) and indirect (100% PROMOCIONES Y, and 100% Mr. AX, both from Andorra) shareholder, which do not have any kind of substance.

This is the first resolution that directly applies this recent EU jurisprudence and, although it is not a reiterative criterion yet, it is quite likely its confirmation, at least regarding situations as clear as the one of this resolution.