{"id":11899,"date":"2025-12-24T11:33:11","date_gmt":"2025-12-24T10:33:11","guid":{"rendered":"https:\/\/maluquerabogados.com\/publicaciones\/sucesiones-y-la-reduccion-del-95\/"},"modified":"2026-01-29T10:42:09","modified_gmt":"2026-01-29T09:42:09","slug":"inheritance-management-the-working-child-and-the-95-reduction","status":"publish","type":"post","link":"https:\/\/maluquerabogados.com\/en\/publicaciones\/inheritance-management-the-working-child-and-the-95-reduction\/","title":{"rendered":"Inheritance management: the working child and the 95% reduction in Inheritance Tax"},"content":{"rendered":"\n

In many family inheritances, the deceased personally managed a small portfolio of rented properties or relied on the help of a child or another family member. In these cases, a very common question is whether that family member can be considered the\u00a0\u201cfull-time employee<\/a>\u201d<\/strong>\u00a0required by law for the rental activity to be regarded as an economic activity.<\/p>\n\n\n\n

This detail is fundamental: it determines whether important tax benefits can be applied, such as the\u00a095% reduction in Inheritance Tax in Catalonia<\/a><\/strong>. In this article, we explain in a clear, professional manner, based on the regulations and doctrine of the\u00a0General Directorate of Taxes (DGT)<\/strong>,<\/a> when a child can meet this requirement and how it directly affects the heirs.<\/p>\n\n\n\n

The legal requirement: a full-time employee<\/strong><\/strong><\/h2>\n\n\n\n

For the leasing of real estate to be considered an economic activity and for tax benefits to apply, Article 27 of the Personal Income Tax Law requires that there be at least one person employed under an employment contract on a full-time basis.<\/p>\n\n\n

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\"inheritance<\/figure>\n<\/div>\n\n\n

This criterion also applies to the\u00a0Wealth Tax<\/strong>\u00a0and the\u00a0Inheritance Tax<\/strong>, which refer to the definition of Personal Income Tax in order to determine which activity may benefit from the reductions applicable to the family business and business assets.<\/p>\n\n\n\n

The\u00a0General Directorate of Taxes<\/strong>\u00a0has reiterated this in various rulings, such as\u00a0V0085-23 (23 January 2023)<\/a><\/strong>, which states:<\/p>\n\n\n\n

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\u201cThe requirement will only be deemed to be met if the contract is classified as an employment contract under the current labour regulations and is full-time.\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n

Therefore, it is not sufficient for a family member to assist with management or to be paid a remuneration. There must be a valid employment contract that complies with labour and Social Security regulations.<\/p>\n\n\n\n

Can the child be that employee? It depends on their employment and family situation<\/strong><\/strong><\/h2>\n\n\n\n

In many families, the child who collaborated in the management is considered the natural candidate to meet the requirement. However, labour and Social Security regulations establish clear limits.<\/p>\n\n\n\n

According to the legal framework, the situation is as follows:<\/p>\n\n\n\n

Child over 30 years old who lives with the owner<\/strong><\/p>\n\n\n\n