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V0146-21 1 February 2021 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · explotación agraria prioritaria

The five-year period for maintaining a priority agricultural holding begins upon death

A taxpayer sought clarification on when the five-year period expires for donating farms within a priority agricultural holding without losing the inheritance tax reduction. The Directorate General of Taxes (DGT) clarified that the calculation of this period commences on the date of the deceased's death.

The question raised

When is the five-year period, which the law requires the holder to maintain ownership of the farm due to its status as a priority holding, fulfilled, thereby allowing the donation to be executed without affecting the tax reductions applied at that time.

The DGT's ruling

The five-year period during which the farms of a priority agricultural holding may not be sold, leased, or transferred is counted from the date the tax accrues. According to the Civil Code, the effects of the acceptance of an inheritance are retroactive to the moment of death, which serves as the temporal reference for the calculation of the period.

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