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V0884-21 14 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
OTRO · servidumbre

Creation of an easement for elevator installation is subject to VAT, IBI, and Income Tax

A commercial premises owner grants square footage for the installation of a communal elevator in exchange for being exempt from installation costs. The DGT has determined that this operation constitutes a provision of services subject to VAT, triggers the taxable event for the municipal tax on increased property value, and is taxable under Personal Income Tax.

The question raised

Taxation of the operation under Value Added Tax, the Tax on the Increase in Value of Urban Land, and Personal Income Tax.

The DGT's ruling

The establishment of an easement is a provision of services subject to VAT at 21%, as it does not fall within the exemptions for dwellings or agricultural land. Regarding the IBISE (Tax on the Increase in Value of Urban Land), the granting of use or the sale thereof is subject to the tax. For IRPF (Personal Income Tax), the granting of use generates income from real estate capital, and the sale generates a capital gain or loss.

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