The Family Business Association of the Province of Alicante, known as AEFA, alongside Cuatrecasas, hosted a focused day to review the latest developments surrounding the Inheritance and Gift Tax reform in the Valencian Community. The event brought together professionals and stakeholders to unpack what these changes mean for family enterprises and their successors.
Within the program, Nuria Sigüenza, a lawyer from Cuatrecasas Finance and Tax Office, highlighted how the newly approved regulations substantially reduce the tax burden in this area. She noted that the revised framework lowers tax rates on transfers, and she urged participants to consider how these changes could influence other taxes that may apply to such transmissions. The point was clear: the reform could shift the overall tax picture for donor and beneficiary households, potentially altering planning strategies across generations. (Attribution: Cuatrecasas Finance and Tax Office)
AEFA president Maite Antón underscored the strategic importance of extending the tax incentive and removing the existing bonus, stressing that doing so would smooth the path for transferring family businesses to future generations. By ensuring a smoother transition, she argued, the region can preserve family legacies, sustain job creation, and maintain economic stability in the broader economy. Antón also commented that the association’s long-standing position on this tax remains highly relevant and influential in shaping policy discussions at the regional level. (Attribution: AEFA leadership)
Cuatrecasas contributed further detail about the new Inheritance and Gift Tax guidance. The rules will impact both inter vivos transfers and mortis causae acquisitions that occur from May 28, 2023 onward, provided they are subject to regional regulations. This nuance means the tax framework will apply when the deceased person resides in the autonomous community or when the donated property sits within its borders. (Attribution: Cuatrecasas policy briefing)
The session also clarified that the reform does not alter the Wealth Tax framework or introduce new reliefs specifically tied to regional tax regimes. A reminder was issued that the reform imposes a maximum marginal rate of 3.75% for cashable bases exceeding €10 million, with the limits and application dependent on local rules and interpretations. The audience was encouraged to consider how these ceilings interact with individual estate planning strategies and liquidity planning for large transfers. (Attribution: regional tax authorities)
Francisco Picó, managing partner of Cuatrecasas’ Finance and Tax department, offered a measured assessment: while the reform appears solid and generally positive for many taxpayers, certain scenarios still lack clarity and require careful analysis. He urged practitioners to monitor how future guidance might fill gaps, especially in edge cases that test the boundaries of the new rules. (Attribution: Cuatrecasas Finance and Tax)
Picó also outlined practical tools available to family businesses navigating intergenerational change. He discussed alternative financing structures for donations and how strategic area divisions can mitigate tax exposure. The talk also covered risk management strategies, including tax contingency insurance designed to shield taxpayers from potential shifts in eligibility criteria for incentives under the family business regime, as administered by the Tax Administration. The aim was to equip business owners with options that maintain tax efficiency while supporting smoother succession planning. (Attribution: Cuatrecasas Finance and Tax Office)