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Right of Way: 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 11 rulings · 2014–2023

Current position

The establishment of a right of way is considered a provision of services subject to IVA (Value Added Tax), but it is exempt as it involves real rights of enjoyment over land for rustic exploitation according to article 20.One.23º of Law 37/1992. In the scope of IRPF (Personal Income Tax), the amount received constitutes income from real estate capital if the property is not used for an economic activity. If the right of way is in perpetuity, the 30% reduction for income with a generation period exceeding two years applies.

The DGT's position remains constant regarding the nature of the operation as a provision of services exempt from IVA due to its agricultural character. The evolution focuses on the precision of the tax classification in IRPF, distinguishing between income from real estate capital and income from economic activity depending on the use of the land. Nuances regarding the application of reductions for irregularity in collection have been integrated.

Turning points

  1. V3104-17

    Establishes the distinction between income from real estate capital and income from economic activity based on whether the right of way implies the removal of the land's use for cultivation.

  2. V3323-20

    Specifies the application of the 30% reduction for rights of way in perpetuity by considering them income with a generation period exceeding two years.

Analysis based on 10 of 11 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

11
V2493-14 23 Sept 2014

Creation of an easement on rural land is exempt from VAT

SG de Impuestos sobre el Consumo
servidumbre de pasoterreno rústicoprestación de serviciosexención de IVAobligación de facturar LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5.1.c
Affects CompanyExpat · Non-residentIndividual

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