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Form 100. Personal Income Tax Declaration 2019

10.11.14. By investment in agricultural companies and cooperative societies

Taxpayers may deduct 20 percent of the amounts invested in the acquisition of social capital as a result of agreements to establish companies or increase capital in agricultural companies and agricultural cooperative societies or community exploitation of the land.

Also deductible, with respect to the same entities, 20 percent of the amounts transferred on loan or personally guaranteed by the taxpayer, at the time of the incorporation of the company or the expansion of capital of this.

The joint maximum limit of the deduction is 20,000 euros, regardless of the number of members of the family unit that meets the amounts that qualify for it.

Requirements

  • The participation of the taxpayer, together with those of the spouse or people linked by reason of kinship, in a direct or collateral line, by consanguinity or affinity up to the third degree included, cannot be greater than 40 percent of the share capital of the entity or their voting rights at any time and during the three years following the constitution or expansion.
  • The entities subject to investment must have their registered and tax domicile in Galicia for the three years following the constitution or expansion.
  • They must have agricultural activity as their exclusive corporate purpose.
  • The operations subject to deduction must be formalized in a public deed.
  • The shares must be maintained for a minimum period of three years in the taxpayer's assets, following the constitution or expansion.
  • In the case of loans, they must refer to financing operations with a term equal to or greater than 5 years.
  • In the case of guarantees, these must extend throughout the duration of the operation, and may not be less than five years.

Incompatibility

This deduction is incompatible, for the same investments, with the deductions "For investment in the acquisition of shares or stakes in new or recently created entities", For investment in the acquisition of shares or stakes in new or recently created entities and its financing", and "By investment in shares of entities listed in the expanding companies segment of the alternative stock market."

Completion

The program gives the possibility of including up to two entities that are the subject of the investment; it must necessarily record the amounts invested in the entities, as well as their NIF.