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V0546-25 ·28 March 2025 ·consulta-vinculante Medium impact
Tax

Conditions for a community of property to be a taxable person for VAT purposes in the transfer of land

A community of property engaged in real estate promotion seeks whether transferring a plot in an ongoing urbanisation, subject to urbanisation obligations, allows application of the passive subject investment. The DGT rules that real encumbrance due to urbanisation obligations does not constitute a real guarantee for applying this provision.

In 6 key points

How it affects those involved

The absence of a real guarantee due to urbanisation obligations means that the passive subject investment rule does not apply to plots in ongoing urbanisation.

Lifecycle

2025-03-28PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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