Doctrine by topic · DGT Observatory

Second Deliveries 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 9 rulings · 2015–2026

Current position

Second and subsequent deliveries of buildings are subject to IVA (Value Added Tax) but are exempt, allowing for the waiver of the exemption if the acquirer is a taxable person with the right to deduction. In such a waiver, the reverse charge mechanism applies. For the exemption to apply, the property must have been used by the owner or holders of real rights for at least two years.

The DGT's position remains constant regarding the treatment of the exemption and the possibility of waiver through the reverse charge mechanism. Refinements have been integrated concerning the nature of the operation in specific cases, such as the exclusion of the exemption in short-term financial leases or when the building is intended for demolition.

Turning points

  1. V1377-16

    Establishes that the exemption does not apply if the delivery derives from a purchase option in a financial lease with a minimum duration of 10 years.

  2. V2924-23

    Determines that the delivery of a building intended for demolition prior to a new development is not an exempt second delivery, but a delivery of buildable land subject to 21%.

Analysis based on 9 of 9 rulings with a stated position. Updated 12 October 2026.

Rulings on this topic

7
V4116-15 21 Dec 2015

Renunciation of VAT exemption possible in business property transfers

SG de Impuestos sobre el Consumo
renuncia a la exenciónpatrimonio empresarialsociedad de ganancialesinversión del sujeto pasivoderecho a la deducción LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 4.Dos.b
Affects CompanyExpat · Non-residentIndividual

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