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A query was raised regarding whether the transfer of rural estates from a father to his children upon death allows for the agricultural business reduction. The Directorate General for Taxes (DGT) ruled that this is not applicable because the deceased was not the owner of the agricultural business, but rather an agricultural company.
The ruling limits the scope of the agricultural business tax reduction, clarifying that the deceased must personally hold the title to the agricultural business for the reduction to apply, rather than a corporate entity.
The tax team reviews your specific situation.
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