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V1167-22 26 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Olive groves may be depreciated under the objective estimation method for Personal Income Tax

A taxpayer inquired whether depreciation could be applied to an olive grove plantation to determine its net yield. The Directorate General of Taxes (DGT) confirmed that this is possible by following the coefficients and rules set out in the objective estimation regulations.

The question raised

Whether depreciation of the olive grove may be applied for the determination of net income.

The DGT's ruling

For agricultural activities under the objective estimation method, olive groves are depreciable by applying a maximum linear coefficient of 3% and a maximum period of 80 years. The depreciation base shall be the acquisition price or production cost, excluding the value of the land. In this case, as the land and the olive grove were not acquired as a single unit, the base shall be the planting cost.

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