Industries
Agriculture
Agriculture in South Tyrol has its own rules, from the closed farm (maso chiuso) to farm holidays. We advise farmers and agricultural businesses on taxes, ancillary activities, grants and farm succession.
Industry
What matters to you
Fruit and wine growing, dairy farming, mountain farms with livestock: agriculture in South Tyrol is diverse, and so are the tax questions. Many farms supplement their income with farm holidays, direct marketing, contract work with machinery or a photovoltaic system. Each of these activities has its own rules.
We handle ongoing taxation, review ancillary activities and plan the farm handover with you. For grants and specific legal questions we coordinate with the relevant authorities and your other advisers.
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Taxation of agricultural businesses
Depending on the activity and legal form, agricultural income may be taxed on the basis of cadastral income. Different rules apply to certain ancillary activities and business forms. Further benefits depend, among other things, on personal status and the respective requirements.
For VAT, many farms are subject to a special scheme with flat-rate compensation percentages; small farms below a certain turnover threshold may be largely exempt from the obligations. Delivering your fruit, grapes or milk to a cooperative also affects the accounting. We check which scheme applies in your case and whether opting for standard taxation makes sense.
Farm holidays and direct marketing
For farm holidays (agriturismo), special income tax and VAT rules may apply under certain conditions. We review the tax classification together with the provincial requirements and clarify the resulting record-keeping and reporting obligations.
For direct marketing too – for example in a farm shop, at a farmers’ market or online – and when processing your own produce into juice, wine, cheese or speck, the decisive question is whether the activity still counts as agricultural. If it becomes too large or mainly bought-in products are sold, it may be classified as a commercial activity for tax purposes.
- Review of whether ancillary activities still qualify as agricultural
- Records and filings for farm holidays (agriturismo)
- VAT on processed products and farm-gate sales
Farm succession and the closed farm (maso chiuso)
Many South Tyrolean farms are closed farms (maso chiuso). They are governed by the provincial law on closed farms, which provides for undivided transfer to a single successor and settles the claims of the other heirs through a takeover price. In addition, there is agricultural land and buildings not organised as closed farms, to which the general rules apply.
For transfers to young farmers and family members, tax law provides relief on registration, mortgage and cadastral taxes, provided the conditions are met. We plan the transfer with you, calculate the tax consequences and work with the notary, the farmers’ association (Bauernbund) and lawyers.
Grants, photovoltaics and investments
Farms receive funding from the EU Common Agricultural Policy, the Rural Development Programme and the Province of South Tyrol, for example for barns, machinery, irrigation or farm access roads. The programmes have their own deadlines and obligations, and failure to meet them can lead to repayment claims.
For photovoltaic systems on farm buildings, we check the link with the farm business and the tax treatment of electricity generation. For investments in barns, machinery or holiday apartments, we also consider financing, VAT and the applicable method of determining income.
Step by step
How we work together
Getting to know the farm
We get an overview of land, crops, ancillary activities, family circumstances and the tax treatment applied so far.
Assessment and clarification
We check which tax and VAT regime applies, whether all activities are correctly classified and where action is needed.
Ongoing support
We handle records, filings and tax returns, keep an eye on grant deadlines and run payroll for seasonal workers.
Plan ahead
For investments, new ancillary activities or a farm handover, we plan the steps early with you and your family.
Frequently asked questions
Answers on ancillary activities, photovoltaics and farm handover.
When does farm tourism become a commercial business for tax purposes?
It is essential that the agricultural activity outweighs the letting business and that provincial regulations are complied with. If the offering is expanded substantially, flat-rate taxation may no longer apply. We review this before any major expansion.
Do I have to pay tax on my photovoltaic system?
The tax treatment depends on the operator, the link to the farming activity and the statutory requirements. A special method of determining income may apply even above certain thresholds. We therefore examine income tax and VAT separately on the basis of your installation and contracts.
What needs to be considered when handing over a closed farm?
Besides the closed farm law (Höferecht), with the farm successor and the takeover price, the tax benefits, the security of the transferring owners and the claims of siblings must be clarified. Ongoing funding obligations must also pass to the successor. We coordinate all points with the notary and the family.
Can I use the same benefits as a part-time farmer?
Not every incentive requires farming to be your main occupation. What matters is the specific provision, your activity and, where applicable, your status as a coltivatore diretto or IAP. We check which requirements you meet.
Let’s talk about your plans.
Arrange a no-obligation initial meeting in Merano, Laces or online.