Guide to business in Spain Guía de negocios en España


5. Distributable profit

5. Distributable profit

In the context of the accounting legislation reform process described above, the rules for distributing company profit contained in Article 273 of the Revised Corporate Enterprises Law have been amended, and, in general terms, currently provide that:

  • The profit taken directly to equity may not be distributed either directly or indirectly.
  • Any distribution of profit is prohibited unless the amount of unrestricted reserves is at least equal to the amount of research and development expenditure that appears on the asset side of the balance sheet.
  • The Article establishes that a restricted reserve equal to the goodwill recognized on the asset side of the balance sheet must be set up, earmarking for this purpose a percentage of profit that represents at least 5% per year of the aforementioned goodwill and, in the absence of profit or any insufficiency thereof, it provides that unrestricted reserves must be used.

Guide to business in Spain

Annex III. Accounting and audit issues


ICEX - Gobierno de España - Ministerio de Economía y competitividad
Elaborado por Garrigues - Abogados y Asesores Tributarios
INVEST IN SPAIN. Paseo de la Castellana, 278. 28046 Madrid
T: (+34) 91 503 58 00 |