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V1472-22 21 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · servidumbre de paso aéreo

Establishment of an overhead energy easement is subject to but exempt from VAT

An owner of a rural plot engaged in agricultural activity has enquired about the taxation of establishing an overhead energy easement for a term of 35 years. The DGT has determined that while the transaction is subject to VAT, it is exempt, and that the income is classified as income from real estate capital for Personal Income Tax (IRPF) purposes.

The question raised

Taxation of the transaction under Value Added Tax and Personal Income Tax.

The DGT's ruling

The establishment of an aerial energy easement over a plot of land is subject to VAT but is exempt. For Personal Income Tax purposes, if the land is not used for an economic activity, both the price and the compensation received for the easement are considered income from real estate capital.

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