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V2940-16 ·23 June 2016 ·consulta-vinculante Medium impact
Tax

Expropriation to prevent owner defenselessness is not exempt from the IVTNU

The taxpayer asks whether a transfer resulting from compulsory expropriation is exempt from the tax on the increase in value of urban land. The DGT rules that the exemption only applies to operations involving the distribution of profits and burdens, not to expropriations intended to prevent property rights from being stripped of their economic substance.

In 6 key points

How it affects those involved

This ruling clarifies that compulsory expropriation does not automatically trigger an exemption from the IVTNU, limiting the scope of the exemption to specific distributive operations.

Lifecycle

2016-06-23PublishedPublished 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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