Introduction on Family Business Transfer of Ownership Incentive
The purpose of the incentive is to assist and facilitate family businesses to transfer their business from one generation to the next by providing benefits including governance and fiscal benefits for the better management and organisation within the family and the business.
Duration of the incentive
This scheme will remain ongoing until 31st December 2020.
This incentive is available to all undertakings registered as a Family Business. A Family Business is an undertaking as defined in Article 3 of the Family Business Act that is duly registered as a Family Business and holds an updated certificate issued by the Regulator for Family Businesses.
The incentive consists of a reduced rate of stamp duty on the following transfers:
- Stamp duty payable on the transfer of immovable property that had been used for a period of at least three (3) years;
- Stamp duty payable on the transfer by an individual of shares or interest in a partnership, trust or foundation to family members.
Duty shall be charged on the first €500,000 of the value of the property transferred at the rate of €3.50 per €100.
With respect to the transfer of shares or interests in a partnership, a trust or a foundation held in a family business which carries on a business, no account shall be taken of the first €150,000 or such other greater amount as may be prescribed of the value of shares, or interests in a partnership, trust or foundation transferred.
In line with the De Minimis Regulation, the total amount of de minimis aid granted to a single business shall not exceed the amount of €200,000 over any period of three (3) consecutive fiscal years.
De minimis aid
The total value of de minimis aid granted to a single undertaking may not exceed the amount of €200,000 over any period of three consecutive fiscal years.