To acquire the qualification of I.A.P. and thus benefit from tax breaks, it is necessary to submit the request to the relevant region. The I.N.P.S., having verified registration in the regional lists, provides for registration in social security management, which is also an essential requirement for accessing tax benefits.
It should be remembered that an I.A.P. is required to pay the INPS contribution which varies depending on the location of the land where the I.A.P. lends its professional capacity, from approximately €2,750 per year for disadvantaged areas to approximately €4,750 per year for normal areas (amounts subject to annual revaluation).
Let’s see what tax and financial benefits the I.A.P. can benefit from.
SMALL COUNTRY PROPERTY
The I.A.P. can purchase land for agricultural use by paying the cadastral tax of 1% and the fixed registration and mortgage tax. Furthermore, the deeds are exempt from stamp duty and notary fees are reduced by half. However, the same person must undertake to directly cultivate the land thus purchased for at least 5 years: their transfer or rental, even partial, or the interruption of cultivation before this period has elapsed entails, in fact, the forfeiture of the benefit with application of higher taxes and refund of higher taxes.
MUNICIPAL PROPERTY TAX (IMU)
The I.A.P. enjoys exemption from the payment of IMU (Municipal tax) on the agricultural land owned and managed by it, regardless of their location.
The law specifies that land owned and managed by I.A.P. is considered agricultural or direct farmers registered in the agricultural social security management, on which the agro-forestry-pastoral use persists through the exercise of activities aimed and land cultivation, forestry, mushroom cultivation and animal breeding.
In this hypothesis, where the land is classified as buildable, it is considered agricultural and, consequently, exempt from paying I.M.U.
The relief also applies to land co-owned by multiple people, but also managed by a single co-owner who meets the I.A.P. requirements (or direct grower). In this case the entire surface of the land is considered agricultural; the owners holding the qualification of direct grower or I.A.P. will be able to enjoy the exemption, while the others will pay the I.M.U. with the ordinary rules, each for their own share.
RIGHT OF FIRST REFUSAL
The I.A.P. enjoys the right of pre-emption with reference to the purchase of neighboring land, provided that the land for which it intends to exercise pre-emption does not have sharecroppers, settlers, tenants, co-participants or emphyteutic direct farmers.
Pre-emption is a right which, under equal conditions, gives the owner, for the purposes of stipulating a contract, a position of preference over other subjects: enjoying this right means “having precedence” in the purchase of neighboring land compared to other subjects who do not have it.
The right of pre-emption is also subject to a series of constraints including the obligation to manage the neighboring property for at least two years.
It should be highlighted that the benefit of pre-emption is provided only for neighboring land, while it does not apply (unlike what happens for subjects in possession of the qualification of Direct Farmer) for land that an I.A.P. grows directly as a tenant.
The pre-emption in favor of the I.A.P. neighboring is valid where this qualification is held by natural persons or partnerships.
OTHER
Finally, the IAP’s also benefit from other benefits for accessing Rural Development Plans, for the payment of urbanization charges, for obtaining community aid measures in favor of the agricultural sector, for the payment of contributions as well as in the case of expropriation.
To discover the necessary requirements to obtain the qualification of professional agricultural entrepreneur, we recommend reading this article:
Professional agricultural entrepreneur (Italian I.A.P. – Imprenditore Agricolo Professionale): qualification and criterion.
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