Specialist advisory for Spain's agricultural and agri-food sector

Spain’s primary sector — agriculture, livestock, forestry and fishing — has a markedly atomised structure. With more than 306,000 workers registered with Social Security and a productive fabric dominated by sole traders, agricultural cooperatives and family farms, the number of formally registered commercial companies does not reflect the true scale of activity. It is precisely this atomisation, and the coexistence of special tax and employment regimes — the REAGP for VAT, objective assessment by modulos for personal income tax, the Special System for Agricultural Workers — that makes the primary sector one of the most complex regulatory environments to manage without specialist advisory.

The CAP 2023-2027, the European Green Deal and the growing pressure on the sustainability of production models require sector operators to plan both their fiscal and employment compliance and their access to public funding instruments. Changes to eco-schemes, new reinforced conditionality requirements and the extension of coupled voluntary payments demand an annual CAP Single Application management process that goes well beyond a routine administrative filing. At the same time, the Tax Agency has intensified controls over the correct application of the modulos regime, making periodic review of each farm’s situation essential.

At BMC we advise farm owners, first and second-degree agricultural cooperatives, fishing and aquaculture companies, and agribusiness groups on their full range of tax, employment and legal needs. Our services cover tax planning under the objective assessment or direct assessment regimes, REAGP analysis and optimisation, agricultural Social Security management for both own employees and contracted seasonal workers, handling the CAP Single Application, and the legal structuring of cooperatives, SATs and family farming companies. We also advise investors and family offices on the acquisition of rural properties and the tax planning of forestry income.

Access to public funding is a decisive competitive factor in the sector. We manage Second Pillar CAP grants — farm modernisation plans, young farmer integration schemes, agri-environment measures — as well as ICEX funding for the internationalisation of agri-food products, FEADER funds channelled through regional Rural Development Programmes, and MITECO funding lines for ecological transition and water efficiency. Our knowledge of the agri-food regulatory framework — from protected designation of origin (PDO/PGI) rules to animal and plant health legislation — enables us to offer genuinely comprehensive advisory to a sector that underpins Spain’s entire food supply chain.

Key services for the agriculture sector

Tax planning for agricultural businesses encompasses the special VAT regime for agricultural producers (REAGP), which exempts registered farmers from filing VAT returns and provides flat-rate compensation from buyers — currently 12% for agricultural and forestry products. The objective assessment regime (módulos) for personal income tax allows farm owners to calculate net income based on objective indicators rather than actual accounts, simplifying administration and potentially generating a favourable differential in high-productivity years.

Grants and subsidies management is arguably the highest-value service for the agriculture sector. CAP direct payments, FEADER rural development grants, young farmer establishment grants and investment subsidies for precision agriculture, water efficiency and renewable energy on farms represent a complex matrix of funding sources requiring specialist management from application through compliance to final justification.

Employment law in agriculture presents unique challenges: seasonal employment contracts, the Special Agrarian Social Security Scheme (SASS) for seasonal workers, the regulations governing accommodation and working conditions of migrant workers from third countries, and compliance with sector collective agreements in each region. Payroll management for large-scale horticultural operations with hundreds of seasonal workers requires dedicated expertise.

Regulatory challenges for the agriculture sector

ESG compliance is transforming the agriculture sector faster than almost any other. The EU Farm to Fork strategy, Green Deal agricultural targets (25% organic farming, 50% pesticide reduction by 2030), CSRD supply chain obligations and due diligence requirements from food retailers are driving significant changes in farming practice, reporting and investment needs. We advise agricultural businesses on developing sustainability frameworks aligned with the EU Taxonomy.

Agricultural succession planning requires coordinated tax and legal advisory. The Spanish family business regime allows a 95% reduction in inheritance and gift tax on the transfer of agricultural holdings when the activity meets the economic activity test, ownership thresholds are satisfied and management functions are remunerated. Early structuring — ideally five to ten years before the intended transfer — avoids forced asset sales and allows the gradual introduction of the next generation.

KPIs and trends for Spanish agriculture 2025-2026

Spain is Europe’s largest agricultural producer by output and one of the world’s leading exporters of fruits, vegetables, wine, olive oil and livestock products. Agricultural exports reached €62 billion in 2024, growing 7% year-on-year, with fruit and vegetables, processed foods and beverages, and wine and olive oil as the main categories. Water management remains the defining structural challenge: more than 70% of freshwater consumption is agricultural, driving rapid adoption of drip irrigation, water reuse and precision irrigation management.

At BMC our agricultural sector team combines knowledge of specialised tax regimes for primary sector operators with expertise in grants management, employment law, corporate structuring and cross-border investment advisory, serving the full spectrum of Spanish and international agricultural operators.