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V1564-14 ·13 June 2014 ·consulta-vinculante Medium impact
Tax

Transfer of land to cover urbanisation costs may be subject to VAT and Capital Gains Tax

A taxpayer queried the taxation of land transfers used to settle urbanisation fees. The DGT ruled that if the owner is acting as a business entity, the transfer is subject to VAT and tax on the increase in value of urban land.

In 6 key points

How it affects those involved

This ruling clarifies that using land as a form of payment for urbanisation works is treated as a taxable transaction if the owner is a professional or business entity, potentially triggering both VAT and capital gains liabilities.

Lifecycle

2014-06-13PublishedPublished 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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