Six Catalan professional organisations are calling for reforms to Catalonia’s Inheritance and Gift Tax (ISD) rules, urging the Generalitat, the regional government, to align its 95% tax relief for family businesses with policies in other Spanish regions, as Cronicaglobal reported.
The proposal, submitted this week to the Generalitat’s Treasury Secretariat, comes from Pimec, the Catalan Association of Tax Technicians, the Barcelona Bar Association (Icab), the Association of Spanish Tax Advisors in Catalonia (Aedaf), the College of Economists, and the College of Administrative Managers. They argue the current rules lack legal certainty and hinder generational turnover in small and medium enterprises.
“When businesses are transferred and succession cannot happen, these companies are often sold to investment funds or large industrial groups and are lost,”
said Sílvia Gabarró, head of Pimec’s economics commission, who spoke to Cronicaglobal.
Key Reforms Proposed
- Extend the 95% tax relief to heirs beyond the fourth degree of kinship.
- Allow compatibility between this relief and general tax benefits for family transfers.
- Remove requirements such as the business owner being over 65 or stepping down from management.
- Treat self-employed individuals and corporate entities equally under the tax rules.
Leonardo Cárdenas of Aedaf stressed the proposals are not new, noting Madrid, Asturias, and the Valencian Community already apply broader relief. The groups want Catalonia to match these standards to maintain fiscal competitiveness.
Sources: Crónica Global.
