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V0542-18 ·26 February 2018 ·consulta-vinculante Medium impact
Tax

Family business inheritance tax relief may be maintained without continuing the economic activity

A taxpayer inquired whether they are entitled to the business acquisition reduction after inheriting a pharmacy that must be sold due to a lack of professional qualifications. The Directorate General for Taxes (DGT) ruled that to retain the reduction, it is not necessary to continue the business activity, but rather to maintain the value of the acquired assets for ten years.

In 5 key points

How it affects those involved

This ruling provides legal certainty for heirs who inherit businesses but cannot personally manage them, allowing them to benefit from tax relief provided the assets are held for the statutory period.

Lifecycle

2018-02-26PublishedPublished 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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