The deadline for filing Form 232 is approaching. On November 30, companies must submit this annual informative return to the Spanish Tax Agency (AEAT), reporting their related-party transactions and any dealings with non-cooperative jurisdictions. For those wondering who is required to file Form 232, the obligation generally applies to companies that have conducted transactions with related parties or operated with entities in tax havens.
Although it does not involve a tax payment, this filing is mandatory, and failure to submit it—or doing so incorrectly—may result in significant penalties. Companies are therefore advised to review their situation in advance and not leave it until the last minute.
What Is Form 232 and What Is Its Purpose?
Form 232 is an annual declaration that must be filed by companies engaging in related-party transactions or transactions with territories considered low-tax jurisdictions. Its purpose is straightforward but important: to ensure fiscal transparency.
Through this form, the Spanish Tax Agency obtains a more comprehensive overview of the financial relationships between group entities, shareholders, or administrators, ensuring that transactions are valued at arm’s length, as required by Article 18 of the Spanish Corporate Income Tax Law (LIS).
Related-party transactions may occur, for example, between a company and its majority shareholder, between group companies, or even between family members participating in the same business.
If you’d like to learn more about how related-party transactions are defined and their tax implications, you can read our article: What are related-party transactions? Learn about their tax impact and compliance requirements
In summary, Form 232 serves as a preventive control mechanism to help avoid the artificial shifting of profits between companies or countries—an issue of growing concern for the Spanish Tax Agency in its efforts to combat tax avoidance and evasion.
Who Is Required to file form 232?
Form 232 must be filed by:
- Entities subject to Corporate Income Tax, that is, companies resident in Spain.
- Non-resident income taxpayers (IRNR) operating in Spain through a permanent establishment.
- Foreign entities under an attribution-of-income regime, provided they have a presence or activity in Spain.
Not all companies are obliged to file, however. The filing requirement applies when:
- The total amount of transactions with the same related person or entity exceeds €250,000 during the fiscal year.
- Specific transactions, such as business transfers, unlisted shares, transfer of real estate and transactions involving intangibles, exceeding 100,000 euros.
- Any transactions or situations involve non-cooperative jurisdictions, regardless of the amount.
Thus, even a single transaction with an entity located in a low-tax jurisdiction may trigger the filing requirement.
What transactions must be reported?
Form 232 covers all transactions in which there is a special relationship or control between the parties. This includes, among others, transactions between a company and its shareholders or administrators, between group companies, or between entities held by close family members.
It also includes any operations conducted with non-cooperative jurisdictions, as listed in Ministerial Order HFP/115/2023, which updated the traditional concept of “tax havens.”
These transactions are closely monitored by the Spanish Tax Agency, as they can affect the erosion of taxable bases and the shifting of profits abroad.
Conversely, all operations carried out in the context of public offerings for the sale or acquisition of securities, tax groups, AIES and UTES that do not have a permanent establishment with exempt income abroad are excluded from filing form 232, regardless of the volume of operations.
When and how should it be submitted
The filing schedule for Form 232 is clearly defined: companies whose fiscal year coincides with the calendar year (January 1 to December 31, 2024) must file between November 1 and November 30, 2025.
The process is entirely electronic and must be completed through the Spanish Tax Agency’s online platform (Sede Electrónica), using a digital certificate, electronic ID (DNIe), or the Cl@ve PIN system.
In practice, this means companies have the full month of November to submit their information on related-party transactions and dealings with non-cooperative jurisdictions for the previous year. While the filing does not involve any payment, it requires careful review and consistency of data, as any error or omission may lead to penalties under the Spanish General Tax Law (generally, 20 euros per data point or data set, with a minimum of 300 euros and a maximum of 20,000 euros).
At LEIALTA, we recommend preparing your transfer pricing documentation in advance and reviewing all transactions carried out during 2024 before mid-November. Having specialized advice can make the difference between a simple compliance formality and a potential tax risk.
If you are unsure whether your company is required to file Form 232 or how to do it correctly, our team can help you assess your situation and ensure full compliance with the regulations — efficiently and without complications.
