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2021 Wealth Tax practical guide.

For investment in agricultural companies

Regulations: Article 13. two Consolidated Text of the legal provisions of the Autonomous Community of Galicia with regard to taxes assigned by the State, approved by Legislative Decree 1/2011 of 28 July.

Requirements for applying the deduction

  • The assets or rights of economic content calculated for determining the taxable base are:

    1. Investments in the share capital of:

      1. Forest development companies regulated by Act 7/2012, of 28 June, on the mountains of Galicia.

      2. Agricultural entities, agricultural cooperatives or land exploitation companies that have exclusively agricultural activities.

      3. The entities that aim to mobilise or recover the agricultural land of Galicia, under the instruments provided for in Act 11/2021 of 14 May, on the recovery of the agricultural land of Galicia.

    2. Loans made to the same companies mentioned in point (a) above, as well as guarantees that the taxpayer personally constitutes in favour of these entities.

    3. Holdings of the capitalist partners in joint accounts set up for the development of agricultural activities and in which the managing shareholder is one of the entities mentioned in point (a) above.

  • The investments to which the deduction is applicable must be formalized in a public deed, in which the identity of the taxpayers who intend to apply this deduction and the amount of the respective operation must be specified.

  • Investments made must be maintained in the taxpayer's assets for a minimum period of five years, counted from the day following the date on which the transaction is formalized in a public deed. In the case of financing transactions, the maturity period must be greater than or equal to five years, without the possibility of repaying an amount greater than 20% per annum of the principal amount. The guarantees established must be maintained for the same period of five years.

Amount of the deduction

  • On 100% of the share corresponding proportionately to the aforementioned assets or rights. 100

  • In the case of holdings in the share capital of companies [section a) of the assets or rights of economic content that indicated in the previous section], the deduction will only be applied to the value of the same, determined according to the rules of this tax, in the this corresponds to the proportion of the assets required for the exercise of the agricultural activity, reduced by the amount of the debts derived from it, and the value of the entity's net assets. To determine this proportion, the value derived from the accounting will be taken, provided that it faithfully reflects the true equity situation of the entity.

  • In the case of loans or holdings in accounts held in the holding [sections b) and ca) of the assets or rights of economic content that indicated in the previous section], the deduction will only apply to the amount financed by the institution's agricultural activity, understanding that they finance this activity in the part resulting from applying the proportion determined in accordance with the provisions of the previous paragraph to its total amount.


This deduction will be incompatible with the application for the same assets or rights as exemptions from article 4 of the Wealth Tax Act, even if this exemption is partial.

This deduction is also incompatible with the deduction "For the creation of new companies or the extension of the activity of recently created companies"