The trusted advisor for Spanish family businesses

Family businesses form the backbone of the Spanish economy: more than 85% of companies in Spain are family-owned, they generate nearly 60% of private employment and contribute more than half of GDP. However, generational survival statistics are concerning: only 30% of family businesses survive into the second generation and fewer than 15% reach the third. The main failure factors are lack of succession planning, unresolved family conflicts, excessive tax burden on transfers and the absence of an adequate governance structure.

At BMC we have spent more than two decades accompanying family businesses and SMEs through the most critical moments of their lifecycle. From optimising the tax structure of ownership and planning generational succession to restructuring companies in difficulty, professionalising corporate governance and preparing the business to raise external financing or for an eventual sale. Our approach combines tax and legal advisory with deep knowledge of the specific dynamics and needs of the Spanish family business.

Succession planning is the service where we add the most value: we structure the transfer of the business with maximum use of the family business tax regime (95% reduction in inheritance and gift tax), minimise the donor’s income tax through holding contribution structures, and design family protocols that establish clear rules for the next generation. We also advise on managing the personal wealth of family shareholders, pension and retirement planning, and the potential creation of a family office to manage the diversified wealth of the business family.

Key services for family businesses

Tax planning for family businesses and their owners must integrate corporate and personal fiscal strategy. The Spanish family business tax regime (régimen de empresa familiar) provides a 95% reduction in inheritance and gift tax on the transfer of qualifying business interests, subject to conditions on economic activity, ownership thresholds and remunerated management. Annual monitoring of compliance with these conditions is essential to preserve the benefit.

The family protocol is the foundational governance document that regulates the relationship between the family and the business, establishing rules on: access of family members to management positions; dividend and remuneration policy; share transfer restrictions and pre-emption rights; dispute resolution mechanisms; and the principles governing the transition to the next generation. A well-designed family protocol, regularly updated as the family and business evolve, is the single most effective tool for preventing the inter-generational conflicts that cause many family businesses to fail at succession.

Restructuring is often the necessary prelude to a successful succession or capital transaction. Simplifying overly complex group structures, separating operating companies from property-holding vehicles, extracting excess liquidity in a tax-efficient manner and implementing a holding company structure that facilitates the parallel management of business and personal wealth are operations that our corporate advisory and tax teams execute in an integrated way.

Regulatory challenges for Spanish family businesses

Corporate governance for family businesses requires balancing family culture with professional management standards. Designing governance frameworks that clearly separate ownership, management and family roles — through advisory boards, executive remuneration committees and family councils — is increasingly important as external investors, creditors and larger trading partners apply governance criteria in their due diligence. We advise family businesses on designing governance frameworks that satisfy external stakeholders while preserving the family’s strategic vision and values.

International tax planning for family groups with activities or assets in multiple jurisdictions requires careful management of controlled foreign corporation (CFC) rules, the tax treatment of distributions from foreign subsidiaries, and the interaction between the Spanish family business tax regime and the tax rules of other jurisdictions where family members or assets are located.

KPIs and trends for Spanish family businesses 2025-2026

Family businesses account for more than 85% of Spanish companies, generate 60% of private sector employment and contribute over 55% of GDP. The main challenges facing Spanish family businesses today are: generational succession (only 30% successfully pass to the third generation); professionalisation of management; access to external capital for growth; and the digital and sustainability transformation. At BMC we have accompanied more than 300 family businesses through these challenges over more than 25 years.

Key services for family businesses

Tax planning for family businesses and their owners must integrate corporate and personal fiscal strategy. The Spanish family business tax regime (régimen de empresa familiar) provides a 95% reduction in inheritance and gift tax on the transfer of qualifying business interests, subject to conditions on economic activity, ownership thresholds and remunerated management. Annual monitoring of compliance with these conditions is essential to preserve the benefit.

The family protocol is the foundational governance document that regulates the relationship between the family and the business, establishing rules on: access of family members to management positions; dividend and remuneration policy; share transfer restrictions and pre-emption rights; dispute resolution mechanisms; and the principles governing the transition to the next generation. A well-designed family protocol, regularly updated as the family and business evolve, is the single most effective tool for preventing the inter-generational conflicts that cause many family businesses to fail at succession.

Restructuring is often the necessary prelude to a successful succession or capital transaction. Simplifying overly complex group structures, separating operating companies from property-holding vehicles, extracting excess liquidity in a tax-efficient manner and implementing a holding company structure that facilitates the parallel management of business and personal wealth are operations that our corporate advisory and tax teams execute in an integrated way.

Regulatory challenges for Spanish family businesses

Corporate governance for family businesses requires balancing family culture with professional management standards. Designing governance frameworks that clearly separate ownership, management and family roles — through advisory boards, executive remuneration committees and family councils — is increasingly important as external investors, creditors and larger trading partners apply governance criteria in their due diligence. We advise family businesses on designing governance frameworks that satisfy external stakeholders while preserving the family’s strategic vision and values.

International tax planning for family groups with activities or assets in multiple jurisdictions requires careful management of controlled foreign corporation (CFC) rules, the tax treatment of distributions from foreign subsidiaries, and the interaction between the Spanish family business tax regime and the tax rules of other jurisdictions where family members or assets are located.

KPIs and trends for Spanish family businesses 2025-2026

Family businesses account for more than 85% of Spanish companies, generate 60% of private sector employment and contribute over 55% of GDP. The main challenges facing Spanish family businesses today are: generational succession (only 30% successfully pass to the third generation); professionalisation of management; access to external capital for growth; and the digital and sustainability transformation. At BMC we have accompanied more than 300 family businesses through these challenges over more than 25 years.