Family business, wealth and succession planning

When a family business is running well, the focus is often only on the present: turnover, team, investments, and growth. But the decisions that preserve the most value are not always the ones that improve the next quarter, but those that protect the business, the family, and the wealth in the medium and long term.

That is why this area is not only about taxes. It is about something much more important: continuity, structure, and preservation of value.

Family businesses don’t protect themselves

The strongest tax and private wealth firms consistently focus on family business advisory, private wealth, tax and estate planning, and structuring assets. In the Spanish market, there are also specialised firms publishing extensive content on family businesses, family protocols, succession, and wealth planning, which reflects a clear demand and a high-value service area.
This makes sense: in a family business, several dimensions overlap at the same time:

• ownership,
• management,
• taxation,
• succession,
• wealth,
• and personal relationships.

If these are not properly structured in advance, the cost later is usually much higher.

Wealth: family business tax exemption must be properly structured

The Spanish Tax Agency (AEAT) explicitly sets out the requirements for the exemption of shares in certain entities under the Wealth Tax. These include: that the entity carries out an economic activity and is not mainly engaged in the mere management of assets; that there is a minimum ownership of 5% individually or 20% jointly with a family group; and that at least one member of the group performs management duties with remuneration representing more than 50% of their net income from work and economic activities.

Practical translation:
the exemption does not depend on simply being “called a family business”. It depends on whether the structure, activity, and management functions are properly designed and properly supported.

Inheritance: in Catalonia there are significant benefits if proper planning is in place

In Catalonia, the ATC states that a 95% reduction in the taxable base may apply for inheritance of assets and rights linked to an economic activity, as well as shares in entities, provided the legal requirements are met. In addition, for inheritances, the ATC outlines the applicable allowances and reductions depending on family relationship and specific circumstances.
At the state level, Law 29/1987 and its implementing regulations form the basis for the well-known 95% reduction regime in inheritance of a sole proprietorship, professional business, or shares, when the legal requirements linked to the Wealth Tax exemption and subsequent holding period conditions are met.
This means that good planning is not a luxury. It can generate very significant tax savings and, above all, prevent the transfer of a business from turning into a liquidity problem, conflict, or capital erosion.

What we work on here

Here we analyse, among other areas:

• whether your family business truly meets the requirements for tax exemptions or reductions;
• how to structure shareholdings, shareholders, and management roles;
• how to coordinate corporate structure, holding companies, and personal wealth;
• how to plan succession without improvisation;
• and how to protect business continuity without creating unnecessary tax costs.

How we approach family business and wealth strategy

First, we properly map the reality:
company, shareholders, management roles, assets, real estate, family structure, and succession planning.
Then we assess three key areas:

• what tax benefits may apply;
• what risks currently exist;
• and what changes should be made to better protect the overall structure.

From there, we design a strategy that combines tax, corporate, and succession planning, not just a snapshot of taxation.

What documentation we need

If you already have it, it is useful to gather:

• corporate structure and shareholding details;
• basic information on shareholders and the family group;
• management roles and remuneration;
• financial statements or basic financial information;
• articles of association, shareholder agreements or family protocols, if any exist;
• and any relevant asset-related documentation.

If you want your family business to last, protecting it properly today is usually far cheaper than fixing it later

This area is not only about paying less. It is about avoiding value loss, organising continuity, and being properly prepared for succession or generational transition.

Request an initial strategic assessment