The incentive for family businesses introduced during 2017, whereby duty on documents and transfers on the transfer of company shares and commercial tenements in intra-family donations has been reduced from 2% or 5% to 1.5% on the real value, has been extended until 30th September 2018 through Legal Notice 82 of 2018, Duty on Donations of Marketable Securities and Immovable Property Used for Business (Exemption) (Amendment) Order, 2018.

The reduction applies in the case of a transfer of marketable securities issued by a company, or of immovable property being a commercial tenement used in a family business for at least three years preceding the transfer by donation from an individual to qualifying family members. A qualifying family member refers to one’s spouse or partner in a civil union, descendants and ascendants in the direct line and their relative spouses or civil union partners or in absence of descendants to one’s brothers or sisters and their descendants.

This reduction in duty applies provided that the donee does not transfer the securities/commercial tenement, inter vivos, within 3 years from the donation and uses the commercial tenement within a business carried on by the donee for three years following the donation.

No other exemption or relief from duty may be availed of.