Agrotourism and Rural Tourism. Regulation for farm diversification.

Decree 40/2014, of 25 March, ordering rural tourism accommodation activities, and Law 13/2002, of 21 June, on tourism in Catalonia, establish the framework for tourism accommodation activities on agricultural holdings. To obtain an agrotourism licence in Catalonia, the operation must meet: (1) the establishment must be located on non-developable (rural or agricultural) land, (2) the tourism activity must be complementary to the main agricultural, livestock or forestry activity, which must remain active, (3) the farmhouse or principal dwelling must be the base of the accommodation, (4) maximum capacity is 15 places for rural houses (farmhouse, masia, rural accommodation), (5) minimum equipment requirements set by the 1995 Generalitat Order must be met. Registration is made in the Catalan Tourism Register (RTC) and commencement of activity requires a responsible declaration.

Article 2 of EU Regulation 1307/2013 (CAP direct payments) defines agricultural activities and establishes that complementary activities (tourism, crafts, processing of own products) are compatible with receiving CAP direct payments, provided the primary agricultural activity remains predominant. The new EU Regulation 2021/2115 (CAP Strategic Plan 2023-2027) maintains the compatibility principle and even introduces specific incentives for diversification of activities on agricultural holdings, such as cooperation measure IG.04 and support for young farmers with diversification. The key criterion is that the farmer must continue carrying out real agricultural activity and the land must remain registered in SIGPAC. Tourism activity alone, without active farming, would not be sufficient to maintain CAP direct payment eligibility.

Article 91.Dos.1.2a of the Spanish VAT Act (LIVA) establishes the reduced rate of 10% for hospitality, camping and spa services and for accommodation services provided by hotels, motels, rural houses, rural tourism establishments and agrotourism establishments. Therefore, accommodation services (room only, bed and breakfast, half board or full board) typical of an agrotourism rural house are taxed at the reduced rate of 10%. Additional services that are not accommodation as such (guided farm tours with a separate charge, cookery workshops, equestrian activities, sale of own products) may be subject to the standard rate of 21% if invoiced separately, or to 10% if included as an integrated service within the accommodation package.

Decree 123/2005, of 14 June, on forest fire prevention measures for urbanisations, population centres, buildings and installations in forested land or their zone of influence in Catalonia, establishes forest fire prevention obligations for buildings and installations in rural areas. For agrotourism establishments in a forest-influence zone or urban-forest interface (UFI), obligations include: (1) perimeter protection strip free of combustible vegetation of at least 25 metres around the building, (2) road access adequate for fire-fighting vehicles (minimum width 4 metres, sufficient turning radius), (3) water tank accessible to Fire Services (minimum 30,000 litres for establishments of more than 15 places), (4) evacuation signage and self-protection plan when the establishment exceeds certain capacities.

The Catalan Accessibility Code (Decree 135/1995, of 24 March, implementing Law 20/1991 on accessibility promotion and removal of architectural barriers) sets accessibility requirements for buildings and establishments open to the public in Catalonia. For agrotourism establishments, accessibility requirements depend on the type of intervention (new build, refurbishment or change of use). In general: (1) at least one accessible route between the public road, the main entrance and shared-use areas, (2) at least one accessible accommodation unit for people with reduced mobility when the establishment has 10 or more places, (3) adapted bathroom associated with the accessible unit, (4) reserved parking spaces for people with disabilities. For historic farmhouses in listed buildings, the Accessibility Code provides exceptions for interventions that would be technically or heritage-wise unfeasible.

Article 25 of Law 35/2006 on Personal Income Tax (IRPF) distinguishes between income from economic activity and income from immovable capital. For a farmer adding tourism to their holding, the tax classification depends on the degree of integration of the two activities: (1) if agrotourism is a natural extension of agricultural activity (farm visits, own products, accommodation in the farm dwelling), the Spanish Tax Authority (DGT) has considered in several binding rulings that it may be taxed as a single economic activity, combining agricultural and tourism income in the relevant tax module or under the direct estimation regime; (2) if the tourism activity is autonomous and substantial (hotel, restaurant separate from the farm), tourism income must be taxed as a separate economic activity from the agricultural one. The change from the objective estimation regime (modules) to direct estimation on exceeding the turnover threshold (EUR 150,000 per year in tourism activity) is one of the main tax risks for established agrotourism operators.