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V0028-16 7 January 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · explotación agraria prioritaria

Tax reductions for donating rural estates to co-owners' children are not applicable

A query was raised regarding whether the donation of rural estates within a priority agricultural holding allows for the application of tax benefits under Law 19/1995. The Directorate General for Taxes (DGT) ruled that such reductions cannot be applied in this specific case.

The question raised

Applicability of the tax benefits provided in Articles 9 and 11 of the Law on the Modernization of Agricultural Holdings.

The DGT's ruling

The tax benefits provided in Articles 9 and 11 of Law 19/1995 require a literal and strict interpretation. The gratuitous acquisition by children of other co-owners is not carried out in favor of the holder of another priority holding, as required by the regulation. Furthermore, the operation does not fulfill the purpose of maintaining or expanding the integrity of agricultural holdings.

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