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V5437-16 ·23 December 2016 ·consulta-vinculante Medium impact
Tax

95% Gift Tax reduction applicable when gifts are made directly to descendants

A donor transfers a retail business to their children, who intend to operate it through a limited company. The DGT clarifies that the 95% reduction applies only if the gift is made directly to the descendants and not to the incorporated company.

In 6 key points

How it affects those involved

This ruling limits the tax benefits available when transferring business assets to family members through corporate structures, ensuring the reduction is reserved for direct individual transfers.

Lifecycle

2016-12-23PublishedPublished 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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