Confianz

Etiqueta: Relevo Generacional

  • How to donate a company to your children in Spain

    Donating a company to your children in Spain is a strategic decision that requires knowledge of legal and tax requirements and practices updated in 2025. Donating a company to your children not only involves formalities, but also requires careful planning to take advantage of tax benefits and avoid future problems. At Confianz we accompany families every step of the way for an efficient and surprise-free generational handover.

     1 how to donate a company to your children in Spain legal and tax requirementes

    To understand how to donate a company to your children in Spain, the current regulations must be reviewed. It is necessary that the company meets the definition of «family business» in article 4.8 of the Wealth Tax Law, avoiding wealth management or tax transparency. In addition, the donor must be over 65 years of age or permanently disabled, and no longer perform managerial functions or receive a salary for them.

    The donee child must undertake to keep the gift for at least 10 years in order to retain the wealth tax exemption, a prerequisite that often distinguishes a gift from an inheritance.

    how to donate a company to your children in spain tax benefits and community of madrid

    2 how to donate a company to your children in Spain tax benefits and Community of Madrid 

    At the national level, donating a company to your children in Spain allows you to apply a 95% reduction in the taxable base for meeting the requirements of a family business. Furthermore, in regions such as Madrid, Andalusia, Castilla y León and Murcia, the ISD tax rebate is 99%.

    As of 1 July 2025, Madrid maintains the 99% tax credit for transfers between parents and children (groups I and II) and extends the tax credit for siblings, aunts, uncles and nephews (group III) to 50%. The requirement of a public deed is also eliminated for donations up to €10,000, and amounts below €1,000 are exempted.

    Therefore, donating a company to your children in Spain with tax support and regional relevance, especially in Madrid, is today efficient and less burdensome.

    how to donate a company to your children in Spain comparative with inheritance and risks

     3 how to donate a company to your children in Spain comparative with inheritance and risks

    Knowing how to donate a company to your children in Spain means understanding the difference compared to an inheritance. In a donation, the requirements are stricter: the donor must prove that he/she has ceased to be a director, be over 65 years of age or disabled, and must keep what he/she has received for 10 years in order to enjoy exemptions that do not apply if this commitment is broken.

    For tax purposes, in the gift the children assume the tax value of the donor (acquisition cost), not the current market value. This can lead to taxation on unrealised capital gains if the company is later sold. In contrast, in inheritance the valuation is updated, avoiding this prolonged tax burden.

    In addition, the donor may have to pay personal income tax on the capital gain derived from the donation if it comes from assets with capital gains such as recently sold shares.

    Therefore, although donating a company to your children in Spain offers tax advantages, it requires careful consideration of risks such as future tax burdens and loss of asset flexibility.

    Practical tips that we recommend at Confianz

    1. Analyse the corporate structure and reform if necessary to meet «family business» requirements.
    2. Formalise the donation before a notary and file form 651 in the corresponding Autonomous Community within the following month.
    3. Evaluate tax scenarios, comparing donation versus inheritance, taking into account capital gains, personal income tax and severance requirements.
    4. Check regional bonuses, especially in Madrid from July 2025.
    5. Plan for the maintenance of tenure, ensuring the commitment of the children for 10 years for the preservation of exemptions.
    6. Provide for the donor’s personal income taxation if he transfers assets with capital gains.
    7. To have legal and tax advice, with a personalised and updated approach to regulatory changes in 2025.

    In our firm we provide practical, humane support tailored to each family. We review the situation, design the best estate plan, manage formalities and support the execution so that the generational handover is completed smoothly.

    We have the experience and the practical approach to ensure that the handover of your family business is done safely, efficiently and without the mistakes.

  • How to ensure the survival of the family business in 2025

    Family businesses in Spain support 92% of the business network. But in 2025, survival will require much more than just endurance. Effort and tradition are not enough. Change is becoming a matter of life and death: the survival of the family business today is not a matter of faith, but of strategy. And whoever understands this in time, wins.

    Family businesses need muscle to survive

    Today, surviving means growing up. It is not a desire, it is an obligation. Family businesses are still smaller, less international and less technological. This triple handicap makes them vulnerable.

    The fact is clear: 94.5% of microenterprises are family-owned, but only 1% of large companies are family-owned. This is no coincidence. It is a symptom that size matters. A lot.

    Small family businesses feel that their essence lies in their human size. And that is true. But that essence cannot be an excuse for not expanding, for not professionalising their management or for not internationalising their activity.

    Did you know that family businesses that manage to grow are also more profitable than non-family businesses? Growth not only protects: it multiplies value. However, to get there you have to make uncomfortable decisions: opening up to external partners, betting on new markets, investing in technology when you can’t yet see the return.

    At Confianz we analyse, propose realistic plans and execute. We know that every family and every company is unique. And that is why each strategy is unique too.

    The generational handover 

    Who will be running your company in ten years’ time? This question terrifies many family entrepreneurs. And no wonder. Only one in three family businesses makes it through the first generation.

    Many think that it is enough to leave the company «at home». But the family name does not guarantee leadership.

    The new generation not only needs to know the company: they need training, management skills, strategic thinking and digital vision. Not preparing the successor is like flipping a coin with the company at stake.

    Moreover, the handover must be managed in two dimensions: business and family. Clearly separating family interests from business interests is vital. Family protocols, well-defined governing bodies and clear rules are the basis.

    We support our clients in their succession processes from a 360º perspective. It is not just a matter of transferring ownership, but of ensuring that the succession strengthens the project. That there are no heavy inheritances or open conflicts. The aim is not to pass the baton: it is to pave the way.

    Without innovation, the family business disappears within 10 years

    Innovation is not a luxury. It is a matter of pure survival.

    The report «Relevance and Survival of Family Businesses» reveals that only 4.5% of family businesses are present in technology-intensive sectors. That means being left out of the great opportunities of today and the future.

    And we are not just talking about developing new products. We are talking about transforming internal processes, adopting digital tools, using artificial intelligence, managing customer data in real time, automating repetitive tasks.

    Digitalisation is no longer an afterthought. It is at the heart of any growth strategy. Family businesses that have chosen to integrate technology show higher rates of profitability and resilience.

    Of course, transforming a family business does not happen overnight. It involves overcoming internal resistance, training teams, redefining roles and investing for the long term.


    In 2025, it is not the one who has been open the longest that survives. Those who know how to read change and act fast will survive.
    Family businesses have proven to be longer-lived than non-family businesses. But this historical advantage will not work if it is not updated.

    Do you have doubts about how to secure the future of your company? That’s normal. The important thing is not to stand still. If you want to start building a stronger future for your family and your business, let’s talk. We’re here to help.