IBI exemption for forest reforestation: 15-year term from the date of application

The Directorate General of Taxes (DGT) has issued a relevant criterion for owners of woodlands carrying out reforestation or regeneration projects of wooded areas. The inquiry focused on determining whether the tax benefit for these activities was conditioned on the validity of the forest management plan or if it responded to a temporal period pre-established by the regulations.

What the DGT has resolved

The administration has confirmed that the exemption provided for in Article 62.2.c) of the Recast Text of the Law Regulating Local Treasuries (TRLRHL) applies for a period of 15 years. This term begins to be calculated from the tax period following the one in which the application for the exemption is submitted.

A key point of the resolution is that the duration of this benefit is independent of the duration of the reforestation works or the validity of the forest management and improvement plan. Likewise, the exemption is limited exclusively to the surface area that is the subject of the reforestation.

What it means for you

If you are the owner of land intended for forestry activity, this criterion provides certainty regarding the temporality of the tax savings. It is not necessary for the forest management plan to coincide exactly with the exemption period, as the right to the benefit is consolidated by the mere fulfillment of the requirements and the submission of the application.

It is important to keep in mind that the exemption is not perpetual. Once 15 years have passed, the property becomes subject to tax payment again. However, the resolution indicates that if new reforestation projects were to be initiated on the same surface area, it might be possible to request the exemption again.

What you should do

For owners wishing to benefit from this measure, it is fundamental to ensure that the reforestation or regeneration projects are duly approved. Since the 15-year calculation begins in the fiscal year following the application, timely administrative management is decisive to maximize the exemption period. It is recommended to assess the situation of each plot of land and the nature of the forestry projects to determine the application of this right.