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V0426-16 3 February 2016 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

IIVTNU must be paid on land transfers to satisfy urbanisation levies

A query was raised regarding the taxable person for the IIVTNU (Tax on Land Value Increases) in a double transfer: first from owners to a Compensation Board to pay for urbanisation, and subsequently from the Board to a third party. The DGT ruled that both transfers are subject to the tax and identified the taxable persons in each instance.

The question raised

Question raised The consultant raises, in relation to the described facts, who must hold the status of taxable person for the IIVTNU when, in a case of allocation of plots resulting from the replanning project to the Compensation Board and subsequent sale by the latter to a third party, a double transfer occurs, such that the first transfer is carried out by the members of the Board in favor of the Board to satisfy urbanization expenses (in the event that the IIVTNU accrual occurs in this scenario), and the second transfer is carried out by the Board in favor of the third-party purchaser.

The DGT's ruling

The transfers of land to satisfy urbanization quotas are not exempt and are subject to the IIVTNU, with the transferors being the taxable persons. Likewise, the subsequent transfer carried out by the Compensation Board is also subject to the tax, with the Board being the taxable person. The calculation of the generation period for the increase in value for the first transfer shall commence from the original acquisition date of the land, as the operations under article 23.7 TRLSRU do not trigger an accrual.

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