Differing advice regarding CGT on inter EU gift

Hi I contacted and got advise from a Madrid based bar registered Lawyer regarding the transfer of a family owned business in Germany from a 72 year old German national with full Spanish tax residency to me a German national with UK residency.

The lawyer states, knowing all above facts (and being aware that plusvalia was my term for Capital Gains tax!):

According to article 33.3 of the Spanish Law 35/2006 of 28th of November, about income tax. Transferring the company from parents to children is free of payment of plusvalÃ*a, your father will not even have to declare this transfer before the Spanish tax authorities.

Also, the guide for calculating the income tax for 2008 mentions this point too.

This is provided by the law in order to make it easy to transfer companies between relatives.


Now a Mallorca based lawyer and a Canary based accountant (although he became insecure now) seem to think above law does not apply because I am foreign. They gave advise to my father before I contacted the Madrid based lawyer. Now since the accountant now became shaky and is sending my father masses of weird legal stuff, while the Madrid based lawyer agreed to send a legal document for my father so he can confront the tax office. We are totally confused about what is going on here.

Are there regional taxs laws that are in contradiction with EU legislation. Sorry it's a wild guess but the non agreeing legal professionals seem to be situated in areas where there is a high concentration of Expats, while the Madrid based lawyer wouldn't be distracted by these issues.

The Madrid based lawyer is 100% legal, registered at the Madrid Bar Association, there are clips and forum entries, so I am 100% confident they aren't a con.

The Mallorca lawyer is specialised in the inter country clientele and the accountant is a local based man, my father describes as a nice man, even giving him a consultation free. :confused:

My father can speak Spanish but he says he can't follow all the legal stuff if the person speaks fast.

As far as we figured out above article 33.3c law 35/2006 and the article 6 of law 29/1987 fits to us and I can't see besides outright disregard of EU laws and regulations why it shouldn't apply to us.


I mean the Spanish tax authorities will see 0 in either case as my father can't pay the CGT if he would do the gift.

What's up? :confused: