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V0081-25 3 February 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · urbanización

The transfer of land under development or developed land is subject to VAT

A commercial entity inquires whether the transfer of developable land with executed main infrastructures is subject to or exempt from VAT. The DGT determines that, as the physical transformation of the land has commenced, it constitutes land under development subject to the tax.

The question raised

Question posed: Whether the transfer of said property would be subject to and, if applicable, exempt from Value Added Tax.

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