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V0527-23 ·6 March 2023 ·consulta-vinculante Medium impact
Tax

Exemption for business transfers does not apply to donations from a son to his mother

A query was raised regarding whether the donation of shares in a family company from a son to his mother could be exempt from Personal Income Tax (IRPF). The Directorate General of Taxes (DGT) ruled that the requirement to transfer assets to a spouse, descendants, or adoptees is not met.

In 6 key points

How it affects those involved

The ruling clarifies that donations between parents and children do not qualify for the specific tax exemption applicable to business transfers, as the legal requirements for the recipient's relationship to the donor are not satisfied in this specific context.

Lifecycle

2023-03-06PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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