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V0570-21 ·11 March 2021 ·consulta-vinculante Medium impact
Tax

Inheritance Tax reduction maintained if proceeds from shares are reinvested in an identifiable financial product

A taxpayer inquired whether, after selling shares for which a 95% reduction was applied, they could retain this benefit by reinvesting the proceeds into an investment fund for 10 years. The Directorate-General for Taxes (DGT) ruled that the holding period requirement is met if the value subject to the reduction is maintained, even if the ownership of the assets changes.

In 6 key points

How it affects those involved

This ruling provides legal certainty for taxpayers seeking to maintain inheritance tax benefits through the reinvestment of proceeds from family business shares into liquid financial instruments.

Lifecycle

2021-03-11PublishedPublished 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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