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Second Delivery of Buildings: 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 62 rulings · 2014–2026

Current position

The transfer of a building is considered a second delivery of buildings, subject to and exempt from IVA (Value Added Tax), if the property has been used for a business or professional activity. The taxable person may waive this exemption if the acquirer has the right to deduction, applying the reverse charge mechanism. The exemption does not apply if the building is intended for demolition prior to a new development, as it would be considered a transfer of land.

The DGT's position remains constant in the application of the exemption for the second delivery of buildings according to Article 20.One.22º. Throughout the rulings, the cases of application have been specified, such as the need for business use or the possibility of waiving the exemption. No changes in criterion are observed, but rather a uniform application of the legal provision.

Turning points

  1. V2923-23

    Establishes that if the building is intended for demolition prior to a new development, the operation is not exempt but is taxed at the general rate as it constitutes a transfer of land.

Analysis based on 57 of 62 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V1001-25 11 Jun 2025

Cannot claim VAT paid when acquiring surface right in 2004

SG de Impuestos sobre el Consumo
derecho de superficieentrega de bienessegunda entrega de edificacionesderecho a la deducciónrenuncia a la exención LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2
Affects CompanyExpat · Non-residentIndividual
V0071-22 18 Jan 2022

Possibility of renouncing VAT exemption in property transfer

SG de Impuestos sobre el Consumo
renuncia a la exencióninversión del sujeto pasivoderecho a la deducciónsegunda entrega de edificacionessujeto pasivo LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 5.1
Affects CompanyExpat · Non-residentIndividual

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