Back to index
V0037-14 14 January 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · explotación agraria prioritaria

90% tax reduction applies to donation of full ownership of agricultural holdings to co-owners, but not to usufruct

A query was raised regarding whether tax reductions can be applied when donating an agricultural holding or its usufruct among members of a community of heirs who are already co-owners. The Directorate General of Taxes (DGT) ruled that the 90% reduction applies to full ownership but not to usufruct, although the 75% reduction for rural estates remains applicable.

The question raised

Application of the reduction provided for in Article 9.1 of the Law on the Modernization of Agricultural Holdings in the event of the donation of an agricultural holding owned by the usufructuary to the remaining co-holders of the priority holding, and in the case of the donation of the usufruct, likewise in favor of the remaining co-holders. Application of the reduction under Article 11 of the same law in the donation of a rural estate owned by the usufructuary in favor of the other co-holders of the priority agricultural holding.

The DGT's ruling

The 90% reduction provided for in Article 9.1 of Law 19/1995 applies to the donation of full ownership of an agricultural holding by a co-participant usufructuary in favor of the other co-holders. However, it does not apply to the donation of the usufruct, as the necessary alterity is lacking due to the absence of a new holder of the holding. On the other hand, the 75% reduction provided for in Article 11 of the same law is applicable to the donation of a rural estate to the other co-holders.

Book your free first meeting