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V3228-18 19 December 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · explotación prioritaria

The reduction for agricultural exploitation cannot be applied to the donation of a farm to a partner

A son wishes to receive the donation of land from his mother to integrate it into the agricultural exploitation of a civil society. The DGT rules that the 75% reduction is not applicable because the acquirer does not achieve nor maintain the status of holder of a priority exploitation.

The question raised

Question posed: Whether the reduction established in Article 11 of Law 19/1995, of July 4, on the Modernization of Agricultural Exploitations, is applicable.

The DGT's ruling

The reduction under Article 11 of Law 19/1995 requires that the acquirer maintains or achieves the status of holder of a priority exploitation. In this case, the ownership belongs to the civil society and not to the partners individually, therefore the donation to a partner does not meet the requirement. The transfer is subject to Inheritance and Gift Tax without said reduction.

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