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The DGT confirms that the donation of shares in a non-resident entity holding a Spanish company operating in Andalusia allows the application of the reduction under Law 29/1987 and the Andalusian regulatory improvement.
Question posed: Applicability of the reduction provided for in Article 20.6 of the Inheritance and Gift Tax Law and in Article 21.2 of Legislative Decree 1/1009, of September 1, issued by the Autonomous Community of Andalusia.
The exemption status for Wealth Tax is met if the taxpayer resident in Spain performs management functions and receives the required remuneration. The fact that the mother is not a resident in Spain does not prevent access to the Wealth Tax exemption, nor to the reduction provided for in Article 20.6 of Law 29/1987 and the enhanced reduction of Andalusia.
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