Doctrine by topic · DGT Observatory

Completed Building: 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 10 rulings · 2014–2020

Current position

The delivery of a completed building is a first delivery (subject to IVA) if carried out by the developer and it has not been used uninterruptedly by the owner or holders of real rights for two years or more. If it is a second or subsequent delivery, it is exempt from IVA. To apply the reduced rate of 10%, the property must have a certificate of habitability or a first occupancy license and be objectively capable of being used as a dwelling.

The DGT's position remains constant regarding the definition of first delivery and the requirements for completion via a final works certificate. The evolution focuses on the precision of the requirements for applying the reduced rate, strictly linking it to the existence of a certificate of habitability or a first occupancy license to avoid the general rate.

Turning points

31 January 2014 V0255-14

Establishes that to apply the reduced rate, the dwelling must have a certificate of habitability or a first occupancy license; otherwise, the general rate of 21% applies.
9 December 2014 V3293-14

Clarifies that buildings in the construction phase do not qualify as first or second delivery and are subject to IVA.

Analysis based on 10 of 10 rulings with a stated position. Updated 28 September 2026.

Rulings on this topic

10

V3635-20 28 Dec 2020

Delivery of a completed property may be exempt from VAT if it is a second or subsequent delivery

SG de Impuestos sobre el Consumo

primera entregasegunda entregaaportación en especieedificación terminadaunidad económica autónoma LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 5.uno

Affects CompanyExpat · Non-residentIndividual

V0676-20 3 Apr 2020

Properties without a first occupation licence subject to 21% VAT unless exempt

SG de Impuestos sobre el Consumo

exenciónsegunda entregatipo reducidolicencia de primera ocupacióncédula de habitabilidad LIVA — Ley 37/1992 del IVA art. 20.Uno.22.ALIVA — Ley 37/1992 del IVA art. 20.Dos

Affects CompanyExpat · Non-residentIndividual

V0159-20 21 Jan 2020

Delivery of a building by an entrepreneur subject to VAT if deemed a first delivery

SG de Impuestos sobre el Consumo

primera entregaedificación terminadaexención de IVAempresariocertificado final de obra LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 5.uno

Affects CompanyExpat · Non-residentIndividual

V0145-20 21 Jan 2020

Delivery of a completed property by a developer may be VAT exempt if used by them for more than two years

SG de Impuestos sobre el Consumo

primera entregasegunda entregaexenciónpromotoruso ininterrumpido LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 4.dos

Affects CompanyExpat · Non-residentIndividual

V0009-19 3 Jan 2019

The first delivery of a property by a developer is subject to VAT and does not qualify for exemption

SG de Impuestos sobre el Consumo

primera entregapromotor inmobiliarioexenciónsujeciónedificación terminada LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2

Affects CompanyExpat · Non-residentIndividual

V2191-17 22 Aug 2017

Requirements for waiving the exemption on the supply of buildings and land

SG de Impuestos sobre el Consumo

renuncia a la exenciónprimera entregasujeto pasivoderecho a la deducciónedificación terminada LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5.Uno.a

Affects CompanyExpat · Non-residentIndividual

V1235-17 18 May 2017

Transfer of a completed building may be VAT exempt if classified as a second or subsequent supply

SG de Impuestos sobre el Consumo

segunda entregaexenciónrenuncia a la exenciónsujeto pasivoedificación terminada LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5.Uno.a)

Affects CompanyExpat · Non-residentIndividual

V0079-15 14 Jan 2015

VAT exemption on housing sales depends on whether the building is completed at the time of the first delivery

SG de Impuestos sobre el Consumo

primera entregasegunda entregaedificación terminadapromotorexención de IVA LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 4.Cuatro

Affects CompanyExpat · Non-residentIndividual

V3293-14 9 Dec 2014

Delivery of buildings under construction is subject to VAT and does not benefit from the second delivery exemption

SG de Impuestos sobre el Consumo

primera entregasegunda entregaedificación terminadaexención de IVAcertificado final de obra LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 4.Cuatro

Affects CompanyExpat · Non-residentIndividual

V0255-14 31 Jan 2014

The transfer of dwellings without a first occupancy license is taxed at the general VAT rate of 21%

SG de Impuestos sobre el Consumo

primera entregaedificación terminadalicencia de primera ocupacióntipo impositivocertificado final de obra LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1.d

Affects CompanyExpat · Non-residentIndividual

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