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V5077-26 25 June 2026 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción por sucesiones

Familiar business succession reduction maintained if acquisition value is preserved through reinvestment

A heir asks whether the 95% reduction under LISD article 20.2.c) is lost if inherited immovable property is no longer used as an economic activity or if sold to reinvest funds in financial assets. The DGT clarifies that the maintenance requirement refers to the acquisition value, not the continuity of the economic activity or specific assets.

The question raised

Whether the maintenance requirement provided for in Article 20.2.c) of the Inheritance and Gift Tax Law is considered fulfilled in the following scenarios:

The DGT's ruling

The requirement to maintain the reduction under Article 20.2.c) of the LISD refers to the value of the acquisition and not to the continuity of the economic activity of the deceased. The reduction is not lost if the real estate assets begin to generate income from real estate capital instead of economic activity. Likewise, the transfer of the assets and their reinvestment in financial assets does not determine the loss of the reduction, provided that the inherited value is maintained. The absence of employees to manage said financial assets is irrelevant for fulfilling the requirement.

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