SMEs: EU Commission to provide fiscal and digital tools to facilitate relocation

To raise awareness and provide information on business transfers. Modernise national legal, tax and inheritance systems and procedures so as to bring them into line with current needs in terms of transfers and encourage owners to transfer their businesses. These are some of the guidelines provided by the European Commission in the ‘Recommendation on facilitating the transfer of small and medium-sized enterprises’, published on 22 June 2026.

Member States are also encouraged to support initiatives that raise awareness, provide information or mentoring to business owners. This may also be achieved through educational activities at the appropriate levels or aimed at specific groups, such as women,young people and people from diverse backgrounds.

As regards legal forms, Member States may assess whether there are appropriate and accessible procedures for changing the legal form of an enterprisewithout liquidation or without the creation of a new legal entity. Such changes should, in any event, take account of the rights of employees and third parties. In order to facilitate the continuity of undertakings in the event of the death of a partner or owner, Member States are also encouraged to establish certain principles. In the event death of a partner, for example, a partnership may continue to operate, allowing the remaining partners to decide on the continuation of the business with or without the involvement of the deceased’s heirs. At the same time, the deceased’s share must be fairly settled. Furthermore, in the event of the death of a partner in a partnership or the owner of a sole trader business, family law and inheritance law (in particular, the rule of unanimity for decisions taken in joint ownership) must not prevent the operation of the SME.

Countries may also consider whether to offer financial instruments to support business relocations that are in line with the Treaty on the Functioning of the European Union and the rules on state aid. The aim must be to preservethe continuity of economically viable SMEs and their jobs within the Union. Furthermore, national tax systems will need to be adapted to better support the continuity of SMEs subject to transfers within the family or to certain third parties. For example, Member States are encouraged to consider reducing or abolishing stamp duty, registration fees and other similar charges associated with the transfer of SMEs, or to defer payment of such charges.

Finally, according to the European Commission, the use of digital tools can improve the efficiency and transparency of business transfers. Member States will therefore be able, for example, to promote the use of platforms to automate data collection and ensure that information is readily accessible.