What is the stamp duty reduction?
In 2017, an incentive for family businesses on the transfer of immovable property was introduced. This has been recently extended till the 31st of December 2018.
Parents transferring their family business to their children can benefit from a reduced stamp duty of 5% to 1.5% on immovable property and 2% to 1.5% on the transfer of shares.
Family members may also include one’s spouse, direct descendants and ascendants, and, one’s siblings in the absence of descendants.
Why is this incentive important?
The reduction presents an opportunity to parent owners to transfer their family business to the next generation at a significantly reduced transfer tax rate. In the case of death, the beneficiary is subject to a 5% transfer tax on the immovable property acquired. Thus, the children will not be eligible to the reduced transfer tax rate.
Our team at Firstbridge can guide you through the processes and help you submit your application on time. Contact us for further information at [email protected]