The purpose of this article is to determine the influence of the tax system on the location of holding companies in Spain.
To achieve this purpose, we have used an analysis of cointegration in time series. The independent variable used was the number of holding companies under Régimen de Entidades de Tenencia de Valores Extranjeros Spanish regime. The dependent variables were divided into two groups: fiscal and non-fiscal variables. The dependent fiscal variables are effective tax rate and double taxation convention, whereas the non-fiscal dependent variables are government effectiveness and business freedom.
The study concludes that the fiscal variables are relevant to establish a holding company in Spain, but there are other variables such as government effectiveness and business freedom that show as well as influence on the location of holding companies.
In the year 2015, the article The influence of the tax system on the location of holding companies in Switzerland was published in the Competitiveness Review. In this article, the influence of taxation on the decision to locate a holding company in Switzerland was analyzed. Now that the Spanish holding regime is consolidated, thanks to more than twenty years of application in our tax legislation, we consider it important to carry out an analysis of the influence of taxation in the decision to locate a holding company in our country. As already mentioned in the article published in 2015, the study of the taxation of holding companies is a topic related more to law firms and/or tax advisors than to academic research, and it is for this reason that there are few empirical studies on this topic. Hence, the research developed in this paper is important.
Erratum: It has come to the attention of the publisher that the article Cardenas Cardenas, G. (2020), “The influence of the tax system on the location of holding companies in Spain”, published in Competitiveness Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CR-12-2019-0135, omitted Professor Sofía García and Professor Alvaro Salas as co-authors of the work.
This error was introduced in the editorial process and has now been corrected in the online version. The publisher sincerely apologises for this error and for any inconvenience caused.
Cardenas Cardenas, G., Gámez, S.G. and Suarez, Á.S. (2021), "The influence of the tax system on the location of holding companies in Spain", Competitiveness Review, Vol. 31 No. 2, pp. 208-230. https://doi.org/10.1108/CR-12-2019-0135
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