Taxes on the Holding of Land.

A) Rates on Real-Estate 

This tax is applied to real-estate ownership. The amount levied is based on the real value of the land as set by the relevant offices and, pursuant to the applicable legal provisions, this valuation tends to match market prices.

Every 3 years the National Appraisal Office sets the mean real value of the country, and this is then adjusted to each specific farm according to its CO.N.E.A.T. (soil and terrain productivity index) and to its proximity to means of communication (national highways) or towns (less than 20 km away). 

B)  Property Tax

At present this tax applies to practically all farming undertakings, except very small establishments. The land enjoys a significant rate of exemption (83.33%), and only the improvements are taxed, estimated at 16.67% of the Appraisal value of the farm.

In practically all cases, except joint-stock corporations, the chattel and livestock of farms are appraised at 40% of the Appraisal value of the farm.
The value taxed in the case of joint-stock corporations is that of their purchase, production or replacement cost.

Deductible liabilities are those derived from the supplies of goods and services to the establishment plus its financial obligations in the banking system. It is also possible to deduce tax debts that are not in arrears. A single 1.5% rate on the taxed net worth is currently the only payment to be made. In general, those farmers who choose to pay the I.R.A., can easily pay their Property Tax from the fiscal credit derived from the IM.E.B.A. and the “I.V.A. agropecuario”.