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V2377-17 18 September 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · explotación agraria prioritaria

Ineligibility for priority agricultural holding exemption in mortis causa acquisitions

A query was raised regarding whether acquiring an agricultural holding through inheritance allows for the exemption under Article 20.1 of Law 19/1995, provided the acquirer is in the process of qualifying as a priority holding. The DGT ruled that the transfer itself does not convert the holding into a priority one, and there is no legal provision that allows for the deferral of the tax benefit.

The question raised

Applicability of the exemption provided for in Article 20.1 of Law 19/1995, on the Modernization of Agricultural Holdings.

The DGT's ruling

Acquisition mortis causa does not determine that the holding becomes a priority holding, as the passage of time and the acquisition of agricultural training knowledge are required. In the absence of a rule allowing for the deferral of the tax benefit provided in Article 20.1 of Law 19/1995, the exemption only applies at the time of transfer. Therefore, no exemption is applicable to Inheritance and Gift Tax.

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