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V1348-15 ·29 April 2015 ·consulta-vinculante Medium impact
Tax

Transfer of land with reserved development rights subject to Corporation Tax on the value difference

A property developer has requested a ruling on the tax implications of transferring land to a local council while reserving development rights for future projects. The Directorate General for Taxes (DGT) has determined that the transaction constitutes a barter and assesses its impact on Corporation Tax, VAT, Transfer Tax (ITPAJD), and Property Transfer Tax (IIVTNU).

In 6 key points

How it affects those involved

The ruling clarifies that the transaction is treated as a barter of assets, affecting how the difference in value is taxed under Corporation Tax and how VAT and transfer taxes are applied to the exchange.

Lifecycle

2015-04-29PublishedPublished 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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