Doctrine by topic · DGT Observatory

Exemption of Buildings: DGT doctrinal evolution

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

← DGT Observatory

How the DGT's position has evolved

Settled doctrine High confidence 70 rulings · 2015–2026

Current position

The exemption for second and subsequent deliveries of buildings requires that the property has been used uninterruptedly by its owner or tenants for at least two years. Lease agreements with an option to purchase do not count towards this period of use. Likewise, the exemption does not apply if the transfer does not include an autonomous economic unit or if it involves removable elements such as solar panels.

The DGT's position remains constant regarding the application of the requirement of two years of uninterrupted use for the exemption. Clarifications have been introduced to exclude lease agreements with an option to purchase from this calculation and to clarify that removable elements or those without an economic unit do not qualify as exempt buildings.

Turning points

  1. V2442-20

    Establishes that solar panels are not buildings as they can be removed without impairment, excluding the exemption for second deliveries.

  2. V0071-24

    Determines that lease agreements with an option to purchase do not count towards the period of use necessary to exhaust the first delivery.

Analysis based on 67 of 70 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V1031-26 7 May 2026

Contribution of land in urbanisation process to capital subject to VAT

SG de Impuestos sobre el Consumo
aportación de capitalentrega de bienesterreno en curso de urbanizaciónexención de edificacionesobras de urbanización LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual
V0306-24 5 Mar 2024

Transfer of unlinked garages and storage rooms subject to 21% VAT

SG de Impuestos sobre el Consumo
primeras entregasobras de rehabilitaciónexención de edificacionestipo impositivo generalinversión del sujeto pasivo LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual
V2672-21 5 Nov 2021

Sale of a building by a co-ownership may be subject to VAT or ITPAJD

SG de Impuestos sobre el Consumo
comunidad de bienesexención de edificacionesrenuncia a la exencióninversión del sujeto pasivotransmisiones patrimoniales onerosas LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual

Apply this to your case

VAT advisoryTalk to the team applying this doctrine daily.
Talk to the tax teamWe check whether this criterion affects you and what it means in your situation.
Email
Contact