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V2430-24 3 December 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · exención diplomática

Purchase of residential property by a diplomat for personal use is not exempt from VAT or ITPAJD

A UN diplomat has enquired whether the purchase of a property (either new or second-hand) is exempt from VAT or ITPAJD. The DGT has ruled that the diplomatic regime exemption does not apply if the acquisition is for personal use rather than for the State or the Organisation.

The question raised

Whether the purchase of the housing would be exempt from Value Added Tax or from the Tax on Onerous Property Transfers.

The DGT's ruling

The VAT exemption for international organizations does not apply if the acquirer is the personnel and not the State or Organization, and the housing is for personal use. If the housing is second-hand (second delivery), it shall be subject to and exempt from VAT. If it is new construction (first delivery), it shall be subject to VAT at 10%. Regarding ITPAJD, if the transaction is subject to VAT, it is not taxed under onerous transfers, but it is taxed under documented legal acts. There are no exemptions in ITPAJD for diplomats.

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