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Valencian Government Unveils 99% Inheritance and Gift Tax Cut for Family Businesses

The move targets smoother generational handovers in a region dominated by family‑run firms.

Overview

  • President Juanfran Pérez Llorca announced the plan at the AVE general assembly in València’s Roig Arena with leading business figures in attendance.
  • The measure reduces inheritance and gift taxes by 99% for family enterprises, including agricultural firms, professional practices, and shareholdings.
  • Eligibility expands to fourth‑degree relatives and to all heirs when the company’s founder is retired.
  • A separate concession grants a 25% reduction in 2026 for transfers between siblings and nephews or nieces, rising to 50% in 2027.
  • Officials note that about 90% of Valencian firms are family‑owned and generate roughly 80% of jobs and GDP, and they report around a 60% rise in donations after earlier cuts for children, spouses, and parents.