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V3084-18 28 November 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción por empresa familiar

Shares may be sold without losing family business tax relief if the acquisition value is maintained

Consultants inquired whether disposing of shares would result in the loss of Inheritance and Gift Tax relief. The DGT ruled that the maintenance obligation pertains to the acquisition value rather than the continuity of the business activity or specific assets.

The question raised

The consultants request clarification regarding the response issued by this management center. In particular, regarding the possibility of performing acts of disposal over the holdings without losing the right to the reduction by failing to comply with the ten-year period provided for by law.

The DGT's ruling

To maintain the family business reduction in mortis causa transfers, neither the continuity of the activity nor of the original shares or holdings is required. The requirement is to maintain the acquisition value for ten years, which value may be materialized in other assets or patrimonial elements such as real estate or financial products. The reinvestment to maintain said value must be carried out as immediately as possible.

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