Intercompany loans, central group services or renting property from a shareholder may require a review of related-party transactions. Their significance is not determined by value alone: the relationship between the parties, the agreed terms and the available documentation also matter.
For the management of a corporate group, the challenge is to maintain a consistent policy across companies and explain how prices are set. Applying the same approach every year without reviewing the facts can overlook significant business changes.
What counts as a related-party transaction?
Related-party status is determined by the circumstances set out in Article 18 of the Spanish Corporate Income Tax Law. It may arise between group entities and in certain relationships with shareholders, directors or family members, subject to the statutory requirements. Not every regular commercial relationship constitutes a related-party relationship.
An initial review should identify the parties and their relationship during the period under analysis. Transactions are then classified: financing, services, purchases and sales, leases, transfers of intangible rights or other dealings.
Pricing and contracts must reflect the actual transaction
The law requires these transactions to be valued on an arm’s-length basis. Simply stating that a price is reasonable is not enough to justify it: analyse each party’s functions, the assets used, the risks assumed and the relevant economic conditions.
The contract forms part of the file, but it must be consistent with what happens in practice. For a loan, for example, review the amount, term, guarantees, interest and actual performance. For a shared service, establish what is provided, who benefits and how its cost is allocated.
What documentation should you prepare?
- A map of related companies and individuals, including changes during the year.
- An inventory of transactions and reconciliation of amounts between the parties.
- Contracts, invoices and evidence of services or goods supplied.
- An explanation of the valuation method and information used.
- An assessment of the scope of the required tax documentation and any available simplifications or exemptions.
This list is a suggested approach to internal organisation. The documentation legally required must be determined by the characteristics of the taxpayer and the transactions.
Form 232: a separate assessment from documentation requirements
Form 232 is an information return. The obligation to file it and the obligation to document related-party transactions must be assessed separately. Not filing the form because an exclusion applies does not, by itself, remove the need to assess other obligations.
The Spanish Tax Agency (AEAT) sets criteria based on factors including transaction volume with the same party, certain specific transactions and the relationship between particular transactions and turnover. Exclusions also exist. Check the complete set of rules, the period and current instructions, rather than treating a single threshold as a universal answer.
An example: central services for several group companies
If one entity provides administrative support to other group companies, identify the service and its recipients before allocating the cost. The file should explain its benefit to each entity and why the chosen allocation method is appropriate.
Dividing all costs equally can be difficult to justify where needs differ. A cash transfer should not be confused with payment for a service actually delivered.
Errors to identify before year-end
Issues worth checking include balances that do not agree between companies, outdated contracts, loans without monitoring and intercompany invoices with imprecise descriptions. An early review helps locate these differences and identify missing information.
Does this affect only international groups? No. It can also affect transactions between parties resident in Spain.
Does a signed contract satisfy every obligation? No: valuation, performance, required documentation and reportable information must also be reviewed.
Adeltra coordinates tax analysis with corporate and legal advice. Request a review of your related-party transactions.
Sources: Article 18 of the Spanish Corporate Income Tax Law and AEAT instructions for Form 232. Editorial review: October 2026.