Succession & Family Wealth

Twelve must-review subjects before relocating to Spain under the Beckham regime

Pre-Beckham checklist for private clients relocating to Spain — twelve subjects from non-residence test and trigger event to exit tax, real estate, trusts, wealth tax, succession and spousal coverage.

The tax regime of Law 49/2002 does not apply automatically to non-resident foundations: the TEAC requires the prior election to exclude taxation under the IRNR

Family business: negative income from other economic activities does not enter the denominator of the 50%

The High Court of Justice of Catalonia confirms that losses from other economic activities do not enter the denominator of the 50% management-functions calculation in the family-business exemption. The rejection of the …

Negative income from other economic activities is not computed in the 50% management-functions calculation under the family-business exemption

Family-business exemption: the remuneration received from companies transferred in the framework of a restructuring is excluded from the 50% calculation at the level of the holding company

Restructuring into a holding: the prior remuneration of the subsidiaries does not cloud the 50% of the family business

The DGT confirms that the contribution of subsidiaries to a holding does not break the family-business exemption: the prior remuneration from the transferred subsidiaries is not integrated into the 50% calculation at the …

The total division to facilitate generational handover is a valid economic reason for the purposes of the FEAC regime of the Corporate Income Tax

Total division to prepare generational handover: valid economic reason under the FEAC regime

The DGT confirms that a total division aimed at preparing succession and facilitating generational handover is a valid economic reason under article 89.2 of the LIS and accesses the FEAC regime.

The DGT consolidates the tax transparency of the foreign trust: the inter vivos contribution is not a gift for IRPF purposes and the mortis causa transfer to the resident beneficiary opens access to the regional ISD legislation

International trusts and inbound workers: the regime of article 93 of the Personal Income Tax Act does not neutralise the resident beneficiary's inheritance tax exposure under personal obligation

The DGT confirms that the office of trustee and general director of a Spanish foundation qualifies as administrator for the purposes of the Beckham regime, and clarifies compatibility with foreign board appointments

The foreign transfer of holdings in a German KG holding Spanish real estate to a Familienstiftung is not subject to ITPAJD, but the DGT leaves the 314 LMV rule and the indirect real-estate capital gain under IRNR unaddressed

The Liechtenstein Stiftung has autonomous legal personality under Spanish law: the contribution of Spanish real estate triggers inheritance and gift tax by in rem obligation