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Payment in Kind: 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 16 rulings · 2014–2026

Current position

The delivery of development rights constitutes a delivery of goods subject to IVA (Value Added Tax). The exemption only applies if the land is rural and no material works of physical transformation exist. If the land is undergoing urbanization or is buildable, the operation is taxable. Accrual occurs when the rights are made available to the acquirer following the notification or publication of the land readjustment project.

The DGT's position remains constant regarding the treatment of the delivery of development rights and land. It is confirmed that the liability for IVA depends on the nature of the land (rural or developable) and the existence of material works of physical transformation. No changes in criterion are observed, but rather a reiteration of the application of the exemption according to the urbanization status of the land.

Analysis based on 16 of 16 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

16
V0758-25 29 Apr 2025

Capital gain from expropriation is recognised in the year of occupation

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialexpropiación forzosaimputación temporaljustiprecioocupación LIRPF — Ley 35/2006 del IRPF art. 14.1.cLIRPF — Ley 35/2006 del IRPF art. 33
Affects CompanyExpat · Non-residentIndividual

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