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Effective Use: 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 51 rulings · 2014–2023

Current position

For services provided to non-resident recipients, the effective use rule of Article 70.Two of Law 37/1992 allows for localization in Spain if the service is effectively used or exploited within the national territory to carry out transactions subject to the tax. A direct or indirect link between the service and said transactions is required. In the case of residential leases, the exemption is maintained if the property is intended for the effective and personal use of a designated natural person, without the power to sublet.

The DGT's position remains constant in the application of the effective use rule for services provided to non-residents, always requiring a link to transactions subject to tax in Spain. Rulings have applied this criterion to various sectors such as mediation, consultancy, advertising, and educational services. The only notable variation is the application of this concept to the exemption in residential leases according to the purpose of the use.

Turning points

  1. V2415-23

    Extends the logic of effective use to the scope of the exemption in residential leases, conditioning it on the personal use of a designated natural person.

Analysis based on 46 of 51 rulings with a stated position. Updated 19 September 2026.

Rulings on this topic

24
V3126-23 1 Dec 2023

Temporary absences do not affect habitual residence status

SG de Impuestos sobre la Renta de las Personas Físicas
vivienda habitualresidencia continuadauso efectivoperiodo impositivoacreditación de hechos LIRPF — Ley 35/2006 del IRPF art. Disposición adicional vigésima terceraLGT — Ley 58/2003 General Tributaria art. 105
Affects CompanyExpat · Non-residentIndividual
V2135-22 11 Oct 2022

Export of aircraft and related training services may be exempt from VAT

SG de Impuestos sobre el Consumo
entrega de bienesprestación de serviciosexención por exportaciónprestación accesorialugar de realización 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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