Doctrine by topic · DGT Observatory

Exemption of Leases: 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 13 rulings · 2015–2026

Current position

The lease of rural land for agricultural exploitation is subject to but exempt from IVA (Value Added Tax). However, the exemption is lost if the purpose of the land involves the installation of elements of a business activity, such as antennas, quarries, photovoltaic installations, or parking lots. In these cases, the operation is subject to the general rate of 21%.

The DGT's position remains constant regarding the exclusion of the exemption when the use of the land is not strictly agricultural. Through various rulings, it is confirmed that the installation of business activity elements (quarries, antennas, photovoltaics) strips the lease of its exempt status. There are no changes in criterion, but rather a repeated application of the exclusion based on the purpose of the property.

Turning points

  1. V0665-20

    It is established that the lease for the exploitation of quarries or the installation of business activity elements is excluded from the land exemption.

  2. V2405-22

    It is confirmed that the lease for photovoltaic installations does not enjoy the rural land exemption as it is intended for a business activity.

Analysis based on 13 of 13 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

13
V1360-26 3 Jun 2026

Parking land rental subject to VAT, not exempt

SG de Impuestos sobre la Renta de las Personas Físicas
arrendamiento de terrenoscesión de usoexención de arrendamientosrendimientos de actividades económicasrendimientos de capital inmobiliario LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2
Affects CompanyExpat · Non-residentIndividual
V1170-26 20 May 2026

Temporary usufruct for tourism use subject to 21% VAT if owner acts as entrepreneur

SG de Impuestos sobre la Renta de las Personas Físicas
usufructo temporalprestación de serviciosempresario o profesionalrendimientos del capital inmobiliarioexención de arrendamientos LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual
V0119-23 3 Feb 2023

Leasing of land for solar panel installation is subject to 21% VAT

SG de Impuestos sobre el Consumo
arrendamiento de terrenosexención de arrendamientossujeto pasivocomunidad de bienesactividad empresarial LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual
V2405-22 18 Nov 2022

Leasing of land for a photovoltaic plant is subject to 21% VAT

SG de Impuestos sobre el Consumo
arrendamiento de terrenosexención de arrendamientosgarantía de pagoactividad empresarialbase imponible LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2
Affects CompanyExpat · Non-residentIndividual
V3124-20 20 Oct 2020

Leasing of rural land for municipal parking is subject to 21% VAT

SG de Impuestos sobre la Renta de las Personas Físicas
arrendamiento de terreno rústicoexención de arrendamientosdevengo del impuestorendimientos de actividades económicasrendimientos de capital inmobiliario LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1.c)
Affects CompanyExpat · Non-residentIndividual

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