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New guides on the latest Spanish tax and immigration developments.
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A taxpayer inquired whether they could apply the 95% reduction to the donation of shares in a family business. The Directorate General of Taxes (DGT) ruled that for this to apply, the shares must be exempt from Wealth Tax, which requires that management functions account for more than 50% of the taxpayer's income.
This ruling clarifies the strict requirements for accessing tax relief on the transfer of family business shares, specifically linking the benefit to the taxpayer's management role and Wealth Tax status.
The tax team reviews your specific situation.
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