Skip to content
V1068-19 ·20 May 2019 ·consulta-vinculante Medium impact
Tax

95% inheritance tax reduction for professional businesses denied if management was previously leased or transferred

A query was raised regarding the applicability of the 95% reduction in Inheritance Tax following the transfer of a camping business. The Directorate General for Taxes (DGT) ruled that this reduction is unavailable if the business had already been leased, as it fails to meet the requirements of habitual, personal, and direct management necessary for the exemption in Wealth Tax.

In 6 key points

How it affects those involved

This ruling limits the scope of tax relief for family businesses, clarifying that outsourcing or leasing management prevents the taxpayer from meeting the strict criteria for inheritance tax reductions and wealth tax exemptions.

Lifecycle

2019-05-20PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact