Doctrine by topic · DGT Observatory

Advance Payments: 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

Stable position High confidence 8 rulings · 2014–2024

Current position

In acquisitions subject to a retention of title clause, the acquirer must account for the total amounts paid as a right up to the date the tax accrues. The valuation of the real estate property based on the higher of its values is not applicable as long as full ownership is not acquired. Regarding Form 720, there is no obligation to report the real estate property until ownership is acquired according to common law.

The DGT's position remains stable regarding the nature of advance payments. It is confirmed that these amounts do not alter the composition of the assets as long as the transfer of ownership or the termination of the contract does not occur. The doctrine clearly distinguishes between the payment of money and the acquisition of ownership of the asset.

Turning points

  1. V2975-15

    Establishes that amounts must be imputed when they cease to be advance payments for an unconsummated transfer and become an autonomous element, constituting capital gains.

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

Rulings on this topic

8
V0460-24 19 Mar 2024

Deliberations on declaring construction property payments in wealth tax

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
reserva de dominioentregas a cuentapatrimonio netomodelo 720devengo LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 1LIP — Ley 19/1991 del Impuesto sobre el Patrimonio art. 3
Affects CompanyExpat · Non-residentIndividual

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