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V2036-25 29 October 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · sujeto y no exento

The VAT exemption on the transfer of land depends on its urban planning classification and whether it is intended for public parks or gardens

A local council asks whether buying land for conversion from residential to public use (a square) is exempt from VAT. The DGT states that exemption depends on the land's classification and urbanistic reality at the time of transfer.

The question raised

Whether said transfer will be subject to, and, where applicable, exempt from, Value Added Tax.

The DGT's ruling

If the new use as public equipment is supported by objective elements, such as its provisional administrative approval, the transfer is considered subject to but exempt from VAT. However, if the change of use is not definitively approved and the buildable residential use is maintained, the operation shall be subject to and not exempt. In this latter case, the transferor must issue a corrective invoice to charge the tax.

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