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Gifts and handing over the family business
The module’s worked examples, then cases to attempt before revealing their solution · 5 sections · 443 words · 5 min
Worked example
Money given to a brother
Laura gives her brother €180,000 to help him start a business. The allowance for siblings is €100,000, so €80,000 is taxed at 6%: €4,800. Because the gift exceeds the allowance, the notary also pays the €200 registration tax. Her brother pays €5,000 in all.
Worked example
Paolo's flat
Paolo's daughter receives a flat worth €400,000. Gift tax is zero because the value is below one million, and for the same reason no registration tax is paid. What remains is 2% mortgage tax, €8,000, and 1% cadastral tax, €4,000. With the first-home conditions met she would have paid €400 in all.
Worked example
Two children, one company
Giovanna owns 100% of a limited company. She gives 60% to her daughter, who works in it, and 40% to her son, who lives abroad. The 60% carries control, so with a commitment to keep it for five years it is exempt. The 40% gives no control of a corporation and follows the general rule: it is taxed only if, for the son, it exceeds one million.
Worked example
An interest in a partnership
Sergio holds 30% of a general partnership and gives his interest to his daughter. For interests in entities other than corporations the law does not require control: the gift is exempt if she keeps the interest for at least five years and says so in the deed. If she disposes of it earlier, the relief is lost.
Practical case
Donatella settles her family
Donatella, a sole trader, makes three gifts in 2026. She gives her business to her son, who undertakes in the deed to carry it on. She gives her daughter a flat worth €200,000, which the daughter will not live in. She gives her brother €150,000 in cash. How much is paid in total in gift tax plus mortgage and cadastral taxes?
Hint: The business goes to a descendant with the commitment paragraph 4-ter requires. The flat stays under the children's allowance, but the property taxes do not. For the brother, a €100,000 allowance and a 6% rate.
Show the solution
Business to the son: a transfer to a descendant with a commitment to carry on trading for five years, so it is outside the tax. Flat to the daughter: €200,000, under the one-million allowance, so gift tax is zero; without the first-home relief she pays 2% mortgage tax, €4,000, and 1% cadastral tax, €2,000. Cash to the brother: 150,000 − 100,000 = €50,000 taxable at 6%, or €3,000. Total 4,000 + 2,000 + 3,000 = €9,000. Separately, on the gift to the brother, which exceeds the allowance, the notary also pays €200 of registration tax.
Answer: €9,000, plus €200 of registration tax on the gift to the brother
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