Doctrine by topic · DGT Observatory

Second and Subsequent Deliveries: 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 8 rulings · 2014–2026

Current position

Second and subsequent deliveries of buildings are exempt from IVA (Value Added Tax) according to article 20.one.22º of the IVA Law. This exemption does not apply if the acquirer carries out rehabilitation works that meet the legal requirements or if they demolish the property for a new development. The transferor may waive the exemption if the acquirer is a taxable person with the right to deduction, applying the reverse charge mechanism.

The DGT's position remains constant regarding the treatment of the exemption for second and subsequent deliveries. It has been repeatedly reaffirmed that the exemption lapses when the acquirer intends the property for rehabilitation or demolition. Likewise, the possibility of waiving the exemption under specific conditions of the right to deduction is maintained.

Analysis based on 8 of 8 rulings with a stated position. Updated 13 October 2026.

Rulings on this topic

8

V5440-26 5 Aug 2026

Transfer of a building for renovation may be subject to VAT rather than exempt

SG de Impuestos sobre el Consumo

rehabilitación de edificacionessegundas y ulteriores entregassujeto pasivoexención de IVAactividad empresarial LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2

Affects CompanyExpat · Non-residentIndividual

V0404-26 26 Feb 2026

It is possible to renounce VAT exemption on the purchase of already leased commercial premises

SG de Impuestos sobre el Consumo

renuncia a la exencióninversión del sujeto pasivosegundas y ulteriores entregasderecho a la deducciónlocales comerciales LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.4

Affects CompanyExpat · Non-residentIndividual

V1193-24 24 May 2024

Waiver of VAT exemption on property purchases possible if the acquirer is entitled to deduction

SG de Impuestos sobre el Consumo

renuncia a la exencióninversión del sujeto pasivoderecho a la deducciónsegundas y ulteriores entregasactividad empresarial LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2

Affects CompanyExpat · Non-residentIndividual

V3062-23 23 Nov 2023

Transfer of a building for renovation is subject to VAT and does not qualify for the second delivery exemption

SG de Impuestos sobre el Consumo

rehabilitación de edificacionessegundas y ulteriores entregasempresario o profesionalexención de edificacionestipo impositivo reducido LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5.uno.d)

Affects CompanyExpat · Non-residentIndividual

V1466-21 19 May 2021

Sale of a property by a company following previous transfers is subject to and exempt from VAT

SG de Impuestos sobre el Consumo

segundas y ulteriores entregasedificacionesempresario o profesionalexenciónsujeción al impuesto LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 4.dos

Affects CompanyExpat · Non-residentIndividual

V2365-18 20 Aug 2018

Handing over a building for renovation or demolition may not be exempt from VAT

SG de Impuestos sobre el Consumo

segundas y ulteriores entregasrehabilitación de edificacionesalquiler socialexención de IVAderecho a deducción LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V2577-14 1 Oct 2014

Transfer of old buildings by a commercial company may be subject to or exempt from VAT

SG de Impuestos sobre el Consumo

segundas y ulteriores entregasrehabilitación de edificacionesparcela urbanaexenciónsujeción LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5

Affects CompanyExpat · Non-residentIndividual

V2236-14 2 Sept 2014

Subsequent deliveries of buildings are exempt from VAT, unless exemption is expressly waived

SG de Impuestos sobre el Consumo

segundas y ulteriores entregasexención de IVArenuncia a la exenciónderecho a la deducción totalinversión del sujeto pasivo LIVA — Ley 37/1992 del IVA art. 4.UnoLIVA — Ley 37/1992 del IVA art. 5.Uno.a

Affects CompanyExpat · Non-residentIndividual

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