We could define it as the process through which the seller transfers a business or a company to a third party (buyer) under certain conditions.
This type of operation may be due to various circumstances, such as the retirement of the transferor, the existence of economic, technical or organisational problems, solvency needs, or in order to expand the portfolio of business activities carried out by the acquirer.
The transfer of companies may not only give rise to taxation for the seller (either in personal income tax, corporate income tax or non-resident income tax), but may also sometimes give rise to the assumption of risks and/or liabilities by the buyer, which can be minimised with a proper review or prior audit (sometimes known as Due Diligence).
It is therefore essential to properly plan both the purchase and the sale of a business or company and to ensure that the risks and tax contingencies that could be assumed in the event that the appropriate checks have not been carried out beforehand are taken into account.
Likewise, the buyer can minimise taxation when acquiring companies or businesses, for which he/she must also have professional tax advice to make it easier to take advantage of the existing advantages.
The tax department of Life Abogados has extensive experience in company purchase and sale processes and Due Diligence, which will give you great security when undertaking a negotiation process, either as a seller or as a buyer.
Our clients, both SMEs and large companies, highlight the analytical skills and experience of our tax team as the cornerstones of their trust in our firm.
We are specialists in restructuring processes and optimising your tax burden, as well as in the defence of your interests in litigation processes in this field.
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