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V2576-14 1 October 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de la agricultura

Non-resident landowner qualifies for VAT agricultural regime

A non-resident exploiting land through third parties asks whether they can benefit from the special VAT regime for agriculture, livestock and fishing. The DGT confirms that exploiting immovable property constitutes a permanent establishment in Spain, making the taxpayer a established VAT liable party.

The question raised

Possibility of opting for the special regime for agriculture, livestock, and fishing within the scope of Value Added Tax.

The DGT's ruling

The inquirer, being the owner of an estate which they exploit on their own account or lease to third parties, maintains a permanent establishment in Spain and is a taxable person established in the territory of application of VAT. Therefore, provided the legal requirements are met, they may apply the special regime for agriculture, livestock, and fishing. Otherwise, or if they waive said regime, they shall be taxed under the general regime.

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