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V3514-20 9 December 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · permuta de fincas rústicas

Exchange of rural estates may be exempt from ITPAJD if restructuring and authorisation requirements are met

An entity has requested clarification on whether the exemption for the exchange of rural estates can be applied when restructuring agricultural holdings. The DGT indicates that, although the purpose aligns with the law, prior authorisation from the competent bodies is required for the exchange operation.

The question raised

Whether the reduction established by Article 12 of Law 19/1995, of July 4, on the Modernization of Agricultural Holdings can be applied.

The DGT's ruling

Voluntary exchanges of rural estates may be exempt from transfer tax if one of the exchangers holds a priority agricultural holding and the operation aims to restructure holdings. However, to apply the exemption under Article 12 of Law 19/1995, it is an indispensable requirement that the exchange has the prior authorization of the competent bodies. On the other hand, the acquisition of an estate by a holder of a priority holding allows for a 75% reduction in the tax base without the need for prior authorization for said benefit.

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