Gift duty exemption for cash gifts used to start or take over an SME

Article 6 of the Act of 2 August 2005 on small and medium-sized enterprises creates Article 790 A bis of the General Tax Code. Cash gifts in full ownership to a child, grandchild, great-grandchild or, failing descendants, a nephew or niece are exempt from gift duty up to €30,000, provided that the money is used within two years to subscribe to the initial capital of an SME or to buy assets for a sole proprietorship, that the recipient works mainly in the business for five years and that the activity is industrial, commercial, craft, agricultural or professional. The scheme applies once per donor and covers sums paid between 1 January 2006 and 31 December 2010.