When drawing up a will, not only do you have to take into account possible conflicts that may arise between family members due to the distribution of the inheritance, but you also have to consider all the possibilities for ensuring that heirs do not have to face enormous tax costs. To do this, the advice of a lawyer specialized in economics and inheritance is essential.
That is the case of David Jimeneza lawyer who, in addition to helping his clients resolve the long procedures corresponding to the drafting and signing of wills, is also dedicated to creating content with which to solve the most common doubts that arise around these topics. Among the most frequently asked questions, there is always something about how to reduce the taxes to pay for receiving an estate.
Instead of making the mistake of undervaluing the assets of an inheritance, which, although it may seem like a saving for successors, may lead to economic sanctions and have repercussions on the profits from the sale of assets, the most advisable thing in the case of companies is to ensure that these meet the requirements to be considered family businesses.
The best way to transfer a company and pay less taxes
A family business is considered one whose control or management is in the hands of one or more family units and they have an important participation in the issues related to this. This legal figure is key when transmitting it through inheritance to the heirs or family members who are working in it, since “Tax reductions for inheriting family businesses range from 95 to 99%“explains the lawyer.
Thanks to these bonuses, the deceased will be able to leave the company in the hands of his heirs practically free of charge. However, it will be necessary to meet a series of requirements. Firstly, regarding the Inheritance and Donation Tax, this can be reduced between 95 and 99% depending on the autonomous community in which the economic activity is carried out, as long as the heir maintains it for the next ten years and is entitled to said exemption.
As for the Personal Income Tax (IRPF), this never pays taxes on inherited assetsbut yes in the case of donations. Likewise, family businesses are not taxed in the Wealth Tax. Measures that seek the survival of this type of business and its economic activity through generational change.
How to achieve family business status and its tax benefits?
To achieve and maintain the status of a family business, it is necessary meet a series of requirements. First of all, the business must develop its business activity for at least 90 days a year without interruption, and goods and assets unrelated to the main activity must not exceed 50% of the total. Second, there must be at least a full-time employee and have the necessary materials to manage the business.
As for the minimal family involvement required for the company to be considered family and have access to the tax benefits mentioned above, it is necessary that the heirs have a individual ownership of at least 5% or 20% joint participation. Likewise, at least one of the members of the family unit must be responsible for carrying out actual management functions.
Both to achieve this condition and to prepare a personalized will with which to minimize family conflicts, possible blockages of the inheritance and the taxes that the heirs must pay, the most advisable thing is go to a lawyer or specialized notary in economics and inheritances. With your advice, this process can be carried out as quickly and legally as possible, without the risk of future tax problems.