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V1589-14 20 June 2014 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

IIVTNU does not apply to the transfer of property classified as rural land

A query was raised regarding whether the transfer of a building located on rural land is subject to the Tax on the Increase in Value of Urban Land (IIVTNU). The Directorate General for Tax (DGT) ruled that, as the land is classified as rural, the transaction is not subject to this tax.

The question raised

The consultant raises the following question:

The DGT's ruling

The IIVTNU is not applicable to increases in value of land that is considered rural for the purposes of the Real Estate Tax. To determine the nature of the property, the regulatory rules of the Real Estate Cadastre must be consulted. If the land is rural in nature according to the Cadastre, the transfer is not subject to the tax, regardless of whether there is a construction on it.

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