50% income tax reduction on interest from deferred payments granted to young farmers

Article 16 of the Agricultural Orientation Act creates Article 199 vicies A of the General Tax Code: a seller who transfers a whole farm, a complete branch of activity or all their shares to a farmer under 40 who set up less than five years ago, with at least half of the price paid at signature and the balance between the eighth and twelfth year, receives an income tax reduction equal to 50% of the interest on the deferred payment, counted up to €5,000 a year (€10,000 for a couple). The interest rate may not exceed the ten-year constant maturity rate. The scheme covers sales between 18 May 2005 and 31 December 2010.