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Protect your family business legacy with structured, tax-efficient succession planning

Comprehensive planning for the generational transfer of your family business: legal structure, family protocol, inheritance tax optimisation and corporate governance for the next generation.

Family business owner planning the generational transfer of the company

What is included

Included services

Succession tax planning

Analysis of the tax reliefs available for family business transfers: the 95% reduction in Inheritance and Gift Tax, requirements for the Wealth Tax exemption and strategies to minimise the total tax burden on the transfer. We also compare lifetime donation against inheritance to identify the optimal route.

Family protocol design

Drafting of the family protocol governing relations between family members as owners: access to capital, rules for family members joining the business, dispute resolution mechanisms, dividend policy and conditions for transferring shareholdings among family members.

Governance structure

Design and implementation of appropriate governance bodies for the family business: professionalised Board of Directors, Family Council, Executive Committee and decision-making mechanisms that balance family participation with management efficiency.

Wealth transfer strategy

Planning of the transfer of both business and personal assets: lifetime donation vs. inheritance, use of family holding companies, asset-holding entities and other structures that optimise the transfer and protect the estate against future contingencies.

Business valuation

Valuation report for the family business using recognised methodologies (discounted cash flow, market multiples, net asset value) for use as a basis in negotiations between heirs, partial transfer transactions or buy-out agreements with minority shareholders.

Next-generation advisory

Onboarding and training programme for successors: understanding financial statements, directors' obligations, tax responsibilities of the new owner and planning the handover of management responsibilities.

Investment

Custom quote based on family structure, number of entities and complexity of the estate.

Spanish family businesses facing generational change

More than 85% of Spanish companies are family-owned, and only one third successfully complete the transition to the second generation. The primary reason for failure is not economic or market-related: it is a lack of planning. Disputes between heirs, the tax burden of inheritance, the absence of proper governance structures and insufficient preparation of successors are the factors most likely to destroy solid businesses with decades of history behind them.

Succession planning is not a notarial formality: it is a process that requires tax analysis, legal design, family accompaniment and, in many cases, mediation. At BMC we work with family businesses at every stage of this process, from the initial conversation through to the effective transfer of control, providing the technical perspective and practical experience needed to make the transition orderly and efficient.

The cost of not planning

Inheriting a business without prior planning can generate a tax bill that forces heirs to sell assets or take on debt to pay Inheritance Tax. A 95% reduction on the value of the company can mean a saving of hundreds of thousands of euros, but it only applies if the conditions are met at the time of death. Those conditions cannot be met retrospectively: they must be built over time. Planning also allows all family members to agree on the rules of the game before they come into force, avoiding the disputes that arise when decisions are made under the weight of grief and uncertainty.

FAQ

Frequently asked questions

Spanish national law provides for a 95% reduction on the value of the family business in Inheritance and Gift Tax, provided certain conditions are met: the business must be the main source of income for the deceased, the heir must maintain the business for at least 10 years, and the company must not have as its main activity the management of a financial or real estate portfolio. Many autonomous communities apply even more favourable reductions.
Ideally planning should begin 5 to 10 years before the intended transfer. This allows sufficient time for the tax tools to take effect (the current owner must perform management functions and receive adequate remuneration), for successors to acquire the necessary training and for the family to reach agreements without time pressure.
A family protocol is a private agreement among family members governing their relationships as business owners. It is not legally mandatory, but it is strongly recommended: family businesses with a protocol have significantly lower conflict rates and a much higher probability of successfully completing a generational transition. In many cases, key provisions are elevated to a public deed and registered at the Companies Registry.
Disputes between heirs are the leading cause of value destruction in family businesses. A well-designed family protocol prevents most of these conflicts by establishing clear rules before they arise. For existing conflicts, we offer family business mediation as a step before any litigation.
Yes, a lifetime gift can be more tax-efficient than inheritance in certain circumstances, particularly in autonomous communities with high Gift Tax relief. It also allows the current owner to supervise the transition and the successor to gain management experience before assuming full control. A comparative tax analysis is an essential part of our planning work.

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