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V5446-26 6 August 2026 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario o profesional

Property transfers are not subject to VAT if the owner is not an entrepreneur or professional

An individual enquired whether the sale of a single-family home built on their own land was subject to VAT. The DGT ruled that if the construction was for personal use and there was no intention of sale or professional transfer, the transaction is not subject to VAT.

The question raised

Whether the transfer of said dwelling would be subject to Value Added Tax.

The DGT's ruling

For a supply of goods to be subject to VAT, it must be carried out by a businessperson or professional in the course of their activity. The status of businessperson depends on the intention to allocate the urbanized land for sale, allotment, or transfer. If the urbanization and construction were carried out for private use, the owner does not acquire the status of businessperson and the transfer shall not be subject to VAT.

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