On 10 September 2026, the DGI established the 2026 deduction limits for agricultural lease payments (arrendamientos agropecuarios) pursuant to Article 38 Ter of Decree 150/995. These caps define the maximum allowable deduction for rental expenses incurred on rural land used for agricultural exploitation, excluding dairy farm leases which are governed by separate provisions. The limits are expressed in Indexed Units (UI) per hectare and differentiated by land productivity classification (CONEAT index), ensuring that deduction ceilings reflect the earning capacity of the leased land.
Key Takeaways
- Productivity-Linked Deduction Ceilings: The CONEAT-indexed limits prevent excessive deductions on high-value land while allowing proportionate relief for lower-productivity areas, aligning tax policy with agronomic reality.
- Dairy Sector Carve-Out: The explicit exclusion of dairy farm leases acknowledges the distinct economic structure of dairy operations, which face different margin pressures and lease market dynamics compared to crop and livestock grazing activities.
- Anti-Avoidance Safeguard: By capping deductions at statutory maximums, the rule prevents artificial inflation of lease payments between related parties to shift income to lower-taxed entities or individuals, a common transfer pricing risk in family-owned agricultural structures.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement