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Lease Without Option to Buy: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 8 rulings · 2014–2022

Current position

The transfer of a building by a developer is considered a second delivery exempt from IVA (Value Added Tax) if the property has been used uninterruptedly by tenants without an option to buy for a period equal to or greater than two years, provided that the acquirer is different from the person who used it. If the acquirer is the person who has used the building during said period, the operation remains a first taxable delivery. The taxable person may waive the exemption if the acquirer has the right to deduction.

The DGT's position remains constant throughout the sequence. The criterion establishes that use by tenants without an option to buy for more than two years transforms the operation into a second exempt delivery, provided that the acquirer is not the previous user. No changes are observed in the interpretation of the rule.

Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8

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