Transfer Tax Exemption for Business Sales to an Employee or the Seller's Spouse
Purpose: Exempts from transfer duties for consideration employees and family members who buy a business, in order to encourage business transfers and help maintain employment. Beneficiaries indicated: businesses with an industrial, commercial, craft, agricultural or liberal activity sold to an employee on a permanent contract for at least two years, to an apprentice, or to the seller’s spouse, civil partner, direct family or siblings. The financial information and availability must be checked against the current official source before use.
The “Exemption from transfer duties when a business is sold to an employee or to the seller’s family” scheme concerns businesses with an industrial, commercial, craft, agricultural or liberal activity sold to an employee on a permanent contract for at least two years, to an apprentice, or to the seller’s spouse, civil partner, direct family or siblings. Its application depends on the legal and tax situation, the nature of the activity and the rules in force. Before relying on it, check the conditions with the administration or competent body, particularly if the catalogue parameters are old or incomplete.
Funded by Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
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Who can apply
Beneficiaries indicated in the catalogue: companies carrying out an industrial, commercial, craft, agricultural or liberal activity, bought either by an employee on a permanent contract for at least two years in the company and working there full time; or by the holder of an apprenticeship contract in progress on the day of the sale, concluded with the company whose business is sold or whose shares are sold; or by the seller’s spouse, civil partner, direct ascendants or descendants, or brothers and sisters. Excluded activity: management of movable or immovable assets held by the company. Eligibility depends on the legal form, activity, area and the legal conditions actually applicable.
Eligibility conditions
Conditions taken from the catalogue: Beneficiaries must: buy businesses or clienteles, or shares acquired for consideration, held by the seller for more than two years; continue, as their sole professional activity and effectively and continuously, for the five years following the sale, to operate the business or clientele sold or the activity of the company whose shares are sold; and ensure effective management of the company during these five years. If the company is placed in judicial liquidation (Title IV of Book VI of the French Commercial Code) within five years of the sale, the regime is not withdrawn. They must be compared with the current text, any local decisions and the applicable forms before concluding on eligibility.
What the scheme covers
Operation or advantage described: Registration duties collected by the State, including additional taxes collected by local authorities. For tax and social exemptions, check the basis and the triggering event; for regional mechanisms, check the eligible costs or uses.
Amount and funding terms
Amount or advantage mentioned in the catalogue: an allowance of €500,000 on the value of the business or clientele, or on the share of the value of the securities representing the business or clientele, for the calculation of registration duties. This allowance can only be applied once between the same seller and the same buyer. Do not treat a tax or social exemption as a grant paid out; confirm the basis, caps and conditions for the year concerned.
How to apply
Recommended steps: 1) confirm the applicable text and official page; 2) check the area, legal form and criteria; 3) check the form, application date and documents; 4) keep the acknowledgement of submission and supporting documents. Check the type of asset transferred, the buyer’s relationship with the seller, the employee’s length of service and the legal commitments; have the calculation checked by the tax office or an adviser.
Timeline
No usable end date is recorded in the catalogue. Check the timetable and applicable conditions with the administration or operator.
Key facts
- Funder
- Ministère de l’Economie, des Finances et de la Souveraineté Industrielle, Energétique et Numérique
- Type of funding
- Tax exemption
- Status
- Ongoing
- Maximum amount
- €500,000
- Automatically extracted — check the official source
- Geographic scope
- All of France
Frequently asked questions
What kind of advantage is this?
The catalogue describes the scheme as follows: exempts from transfer duties for consideration employees and family members who buy a business, in order to encourage business transfers and help maintain employment. It is a tax or social regime, an exemption or a relief mechanism; it should not be treated as a grant paid out if that is not its legal nature.
What commitment is required after the takeover?
The official page indicates in particular a commitment to continue the activity and to ensure effective management for five years. The €500,000 allowance depends on the type of transfer and the buyer’s status.
What amount or rate can be applied?
The catalogue indicates: an allowance of €500,000 on the value of the business or clientele, or on the share of the value of the securities representing the business or clientele, for the calculation of registration duties. This allowance can only be applied once between the same seller and the same buyer. This parameter must be confirmed according to the year, the basis and the beneficiary’s situation.
Which steps and dates should be checked?
No usable end date is recorded in the catalogue. Check the timetable and applicable conditions with the administration or operator. The official page indicates a €500,000 allowance on the value of the business or securities in certain takeovers by an employee on a permanent contract for at least two years or by certain family members. It provides in particular for a commitment to continue the activity and ensure effective management for five years. The procedure and deadlines must be confirmed before acting.
Official source
No official URL is available in our data for this grant.
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