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V1494-16 ·8 April 2016 ·consulta-vinculante Medium impact
Tax

Purchase of non-buildable land: ITP or VAT depending on waiver of exemption

A taxpayer has inquired whether the purchase of a non-consolidated, non-buildable urban plot from a financial institution should be subject to VAT or Transfer Tax (ITP) and Stamp Duty (AJD). The DGT ruled that, as the land is non-buildable, the transaction is exempt from VAT unless the seller expressly waives said exemption.

In 6 key points

How it affects those involved

The ruling clarifies the tax implications for non-buildable urban land, highlighting that the choice between VAT and Transfer Tax depends on the seller's decision to waive the VAT exemption.

Lifecycle

2016-04-08PublishedPublished 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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