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Land Swap: 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 · 2014–2026

Current position

The swap of land for future construction consists of three stages: the delivery of the land, the payment in kind as a down payment, and the delivery of the completed building. The accrual of VAT (IVA) on the future building occurs at the moment of the delivery of the plot, as this acts as a down payment in kind. The resulting building is taxed at the reduced rate of 10%, while the delivery of the land is taxed at 21% if the owner acts as a business person.

The DGT's position remains constant regarding the structure of the operation, always identifying the down payment in kind. No doctrinal changes are observed, but rather a reiteration of the nature of the swap and the moments of accrual. The doctrine has consolidated around the application of Article 80 of Law 37/1992 for the rectifications of the operation.

Analysis based on 11 of 13 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

13

V5447-26 6 Aug 2026

In land swaps for future construction, housing delivery is subject to VAT and tax accrues upon delivery of the plot

SG de Impuestos sobre el Consumo

permuta de sueloobra futurapago a cuenta en especiedevengoprimera entrega LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1

Affects CompanyExpat · Non-residentIndividual

V1363-23 22 May 2023

Exchange of land for future construction taxed at 21% for the plot and 10% for dwellings and outbuildings

SG de Impuestos sobre el Consumo

permuta de sueloobra futurapago a cuenta en especiedevengobase imponible LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno

Affects CompanyExpat · Non-residentIndividual

V2419-21 16 Sept 2021

VAT rectification procedure in land swaps for future works replaced by monetary consideration

SG de Impuestos sobre el Consumo

permuta de sueloobra futurarectificación de cuotaspago a cuenta en especiefactura rectificativa LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2

Affects CompanyExpat · Non-residentIndividual

V2412-21 14 Sept 2021

Transfer of land in exchange for future construction is subject to VAT, while subsequent sales may be exempt

SG de Impuestos sobre el Consumo

permuta de suelopago a cuenta en especiesegunda entregaexención de edificacionessujeto pasivo LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 5.uno

Affects CompanyExpat · Non-residentIndividual

V0878-20 15 Apr 2020

Termination of land swap for future works allows VAT correction via credit note

SG de Impuestos sobre el Consumo

permuta de sueloobra futurarectificación de cuotasbase imponiblefactura rectificativa LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1

Affects CompanyExpat · Non-residentIndividual

V0941-19 29 Apr 2019

VAT must be rectified via credit note and tax return adjustment if a land swap is voided

SG de Impuestos sobre el Consumo

permuta de sueloobra futurabase imponiblefactura rectificativarectificación de cuotas LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V0418-18 19 Feb 2018

Termination of land swap for future construction allows VAT rectification via credit note

SG de Impuestos sobre el Consumo

permuta de sueloobra futurarectificación de cuotasfactura rectificativaresolución de contrato LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 75.Dos

Affects CompanyExpat · Non-residentIndividual

V0344-18 8 Feb 2018

No new VAT accrual if increased floor area does not involve additional payment

SG de Impuestos sobre el Consumo

permuta de suelopago a cuenta en especiedevengocontraprestaciónobra futura LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V0947-16 10 Mar 2016

Public Administration is a taxable person and must charge VAT on the transfer of urban land following compulsory purchase

SG de Impuestos sobre el Consumo

expropiación forzosapermuta de suelosujeto pasivodevengobase imponible LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V1011-15 27 Mar 2015

Transactions between related parties must be valued at market value for CIT, and VAT treatment in land swaps

SG de Impuestos sobre las Personas Jurídicas

valor de mercadoentidades vinculadaspermuta de suelopago a cuenta en especierectificación de cuotas LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 10.3LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 11

Affects CompanyExpat · Non-residentIndividual

V3294-14 9 Dec 2014

VAT accrual on property delivery occurs upon making it available to the purchaser or upon receipt of advance payments

SG de Impuestos sobre el Consumo

permuta de sueloobra futuradevengoentrega de bienespago a cuenta en especie LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 8.1

Affects CompanyExpat · Non-residentIndividual

V2334-14 9 Sept 2014

Exchange of municipal land for future works is subject to VAT as a business activity

SG de Impuestos sobre el Consumo

permuta de sueloaprovechamiento urbanísticoreparcelaciónpatrimonio público del sueloobra futura LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V2134-14 4 Aug 2014

Termination of land swap for future construction requires VAT taxable base rectification

SG de Impuestos sobre el Consumo

permuta de suelobase imponiblerectificación de cuotaspago a cuenta en especieresolución de operaciones LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 20.Uno.20º

Affects CompanyExpat · Non-residentIndividual

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