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V3672-16 5 September 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · nuda propiedad

95% reduction applicable to donations of bare ownership of business shares

A query was raised regarding the application of tax reductions for the donation of shares in a commercial entity. The DGT confirms that the 95% reduction may be applied to the value of the bare ownership and that remaining on the Board of Directors does not prevent the benefit.

The question raised

Applicability of the reduction provided for in Article 20.6 of the Inheritance and Gift Tax Law and Article 33.3.c) of Law 35/2006, of November 28.

The DGT's ruling

The reduction provided for in Article 20.6 of Law 29/1987 regarding the value of the bare ownership donated is applicable. This does not prevent the benefit of donors maintaining their membership on the Board of Directors, provided they cease to perform management functions and receive remuneration for them. Regarding Personal Income Tax (IRPF), the regional reduction is not applicable if the ten-year maintenance period required by state regulations is not met.

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