Skip to main content
Practical Heritage Manual 2022.

Exempt amount

Once the aforementioned requirements and conditions are met, the exemption covers the entire value of the shares, provided that the entire net worth of the entity is affected by the economic activity carried out.

In this case, to determine the amount of the exemption, the following rules must be taken into account:

  • Both the value of the assets and the debts of the entity will be that deduced from its accounting, provided that it faithfully reflects the true financial situation of the entity, said values being determined, in the absence of accounting, in accordance with the Wealth Tax criteria.

  • To determine whether or not an asset is subject to an economic activity, the provisions of articles 29 of the Personal Income Tax Law and 22 of its Regulations will be followed.

  • In securities lending operations, the securities loaned are not counted by the lender for the purposes of this exemption.

However, if in the entity's assets there are assets and rights that are not subject to the development of any economic activity, the exemption will only reach the value of the shares in the part that corresponds to the existing proportion between the assets affected by the exercise. of an economic activity, reduced by the amount of debts derived from the activity, and the total value of the entity's net worth.

For these purposes, items intended exclusively for the personal use of the taxpayer or any of the members of the kinship group referred to in number 3 above, nor those that are transferred for a price lower than the market price to persons or persons, are not considered affected elements. linked entities in accordance with the provisions of article 18 of the LIS .

In such cases, the following formula can be used to determine the value of the exempt shares:

Value of the shares x (net value of the affected assets ÷ net equity value of the activity)