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V2278-19 3 September 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · urbanización

The transfer of developed land is subject to and not exempt from VAT

A query is made regarding the liability and exemption from VAT of the transfer of land considered developed. The DGT determines that, as it is developed land, the transaction is subject to and not exempt from the tax.

The question raised

Question posed: Liability and, where applicable, exemption of the transfer of said land for the purposes of Value Added Tax.

The DGT's ruling

The supply of developed land or land undergoing development does not benefit from the exemption provided for rural land. If the transferor is a businessperson or professional and the land is buildable, developed, or undergoing development, the transfer shall be subject to and not exempt from VAT. In the specific case, as it is land whose development has already been completed, the exemption does not apply.

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What is published here, applied to a company or a specific case. The first meeting is free.

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