Generational transfer: €185,000 in registration duties saved

Family business in constructionGenerational transfer via a holding

Formations · Succession

€185,000Saved
0%Gift tax
HoldingOperational

Initial situation: a generational transfer with gift tax looming

A Belgian family business in the construction sector, active since 1987, faced a generational transfer. The parents wanted to hand over to their two children. A direct transfer of the shares would have led to substantial gift tax and registration duties, on top of a complex valuation discussion with the tax authorities.

1987Active since
2 childrenIntended successors
€185,000Cost looming

Approach: the transfer structured for tax

Step 1
Favourable regime applied: shares gifted under the Flemish favourable regime for family businesses.
Step 2
Holding contributed: the company structure reorganised with a holding company.
Step 3
Dividend flow arranged: future dividends made tax-efficiently transferable.
Step 4
Management handed over: the children took on their own board roles.

Outcome: generational transfer without tax

The generational transfer was completed without tax on the transfer of the shares. A potential €185,000 in gift tax was avoided entirely. The holding structure is operational and the second generation is in charge.