The Supreme Court, in its Ruling No. 956/2025 of 14 July 2025, has resolved an appeal on the application of the 99% reduction in inheritance and gift tax (ISD) in a mortis causa acquisition of shares in a family business engaged in the leasing of real estate, in which the heirs applied the Aragonese reduction.

The High Court concludes that, in order to apply this reduction, it is sufficient to meet the requirements of Article 27.2 of the LIRPF, without the need to justify the hiring of a full-time employee from an economic point of view.

This is a highly significant ruling for the real estate and tax sectors.