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Building Under Construction: 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 9 rulings · 2016–2024

Current position

The delivery of a building in the construction phase or unfinished is subject to the general rate of 21% and is not considered a first delivery of a building. To apply the reduced rate of 10%, the dwelling must be finished, objectively fit for use, and possess a certificate of habitability or a legally issued first occupancy license.

The DGT's position remains constant in requiring that the building be finished to access the exemption or the reduced rate. The evolution shows a tightening of the definition of 'finished', specifying that the lack of essential urban services prevents the work from being considered completed, even with a certificate of completion.

Turning points

  1. V0149-23

    Establishes that the lack of essential urban services, such as potable water, qualifies the building as unfinished even if a final certificate of completion exists.

Analysis based on 9 of 9 rulings with a stated position. Updated 29 September 2026.

Rulings on this topic

9
V2427-21 21 Sept 2021

Purchase of a building under construction is subject to VAT

SG de Impuestos sobre el Consumo
exenciónprimera entregainversión del sujeto pasivoedificación en construcciónejecución de obra LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual

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