Investment approach
Permuta de Solar: A Plot for a Share of the Finished Homes
In a permuta de solar the owner hands over a plot and receives part of the future homes. For IVA that is three transactions, and IVA arises when the plot is transferred.
A permuta de solar is a deal in which a landowner transfers a plot to a developer and, instead of cash, receives part of the future homes. On the position of the Dirección General de Tributos (the Spanish tax authority's rulings body, DGT), this is three transactions for IVA (impuesto sobre el valor añadido, Spanish VAT): the transfer of the plot, the transfer of the plot as advance payment for the future homes, and the transfer of the finished homes (ruling V2887-17 of 13.11.2017). IVA on the payment in kind arises when the plot is transferred, not when the homes are handed over: the developer charges it to the owner. Below are the tax scheme, a worked example and questions for the asesor fiscal (tax adviser); this describes the rules and is not a recommendation on structure.
What transactions make up a permuta de solar?
| Transaction | Who transfers what | Tax |
|---|---|---|
| 1. Transfer of the plot | Owner to developer | IVA 21% if the owner is a business; ITP (property transfer tax) if a private individual |
| 2. Advance payment in kind | Plot as an advance for the future homes | IVA that the developer charges to the owner on receiving the plot |
| 3. Transfer of the finished homes | Developer to owner | IVA 10% on housing for the part not covered by the advance; AJD (stamp duty on notarial documents) 1,5% |
The first transaction follows the general rule. The law treats as businesses, in particular, those who develop in order to sell, even on a one-off basis (art. 5 Ley 37/1992). If a business sells the plot, buildable land carries IVA at the general rate of 21% (art. 90, art. 20.Uno.20), together with AJD. If the owner is a private individual, there is no IVA and the transfer is subject to ITP, paid by the acquirer, that is, the developer (arts. 7.5 and 8.a TRLITPAJD). The IVA and ITP scenarios on land are explained in the article on 21% IVA on a plot.
The second transaction comes from art. 75.Dos: on advance payments the tax arises when the payment is received, on the amount actually received. The DGT treats the plot as an advance payment in kind: the developer charges IVA on its amount, and the plot's owner pays it. An owner who is a private individual cannot deduct that IVA; for them it is a cost. The third transaction occurs when construction is complete and, in the general case, is taxed without exemption. The 10% rate applies to buildings suitable for housing with up to two garages and annexes (art. 91.Uno.1.7º); AJD in Catalonia on transactions subject to IVA is 1,5% (ATC).
How are the amount and the date determined?
If payment is not in money, the IVA base is the money amount agreed by the parties (art. 79.Uno). For related parties, under the conditions of art. 79.Cinco, the base is the normal market value. So the contract needs a valuation of the plot and a valuation of the homes handed over. Any gap between the contract amounts and a market valuation is worth discussing with the asesor fiscal in advance; see Hacienda's value check.
What happens on the plot owner's side?
The owner has several tax questions, and the contract settles none of them for them.
- Plusvalía municipal (municipal land-value gain tax). It is calculated by the ayuntamiento from the cadastral value of the land; the statutory maximum rate is 30% (arts. 107–108 TRLRHL). Real Decreto-ley 29/2026 of 6 October (in force from 8 October, not validated by Congress at 13.10.2026) changes the maximum coefficients from 1 December 2026 (BOE-A-2026-20823); if Congress rejects it, they lapse.
- Tax on the gain. For a resident, IRPF (personal income tax): the gain on a permuta is the difference between the acquisition value of the asset given up and the higher of the two market values, that of the asset given and that of the asset received (art. 37.1.h Ley 35/2006). Non-residents and an SL (sociedad limitada, a Spanish private company) have their own rules.
- The moment the gain arises: on transfer of the plot or on receipt of the homes. This is a question for the asesor fiscal, and I did not find a single DGT answer covering every case.
What happens to the taxes if the project is not completed?
In ruling V2887-17 the DGT examines termination of a permuta: the return of the plot is not treated as a new transfer but as a reason to correct the tax on the original transaction (arts. 80.Dos and 89 Ley 37/1992). For ITP, the return of possession under an express termination condition is not taxed as a transfer, but the notarial document is subject to AJD. If another asset is returned instead of the plot, the rule is different. These cases are worth writing into the contract from the start, with an abogado (lawyer) involved.
What does a worked example look like?
Worked example, not a forecast. The plot is agreed at 2 M€, the owner is a private individual, and the homes are valued at the same figure. The developer pays ITP on the ATC (Agència Tributària de Catalunya) scale, 230 000 € (11,5%), as in the calculation in the article on the tax ladder. IVA at 10% on the payment in kind is 200 000 €: the developer charges it to the owner on receiving the plot (the rate assumes housing). An owner with an acquisition value of 500 000 € has a gain of about 1.5 M€ before expenses. Assumption: the parties agreed the amounts net of IVA. The example has one conclusion: both parties pay tax before work starts, the developer ITP and the owner IVA on the advance, and the cash for it is needed at that stage.
Who a permuta de solar does not suit
Someone with no lawyer on the owner's side: the termination terms and completion guarantees decide the risk more than the tax does. Someone who thinks a swap «without money» creates no taxes: it creates them for both parties. And someone who has not checked the plot's status and licence: value and timing depend on them.
On checking a plot, see land with and without a licence and investing in plots. Projects on plots are described on the land strategies page.
Questions and answers
Is a swap of a plot for future homes subject to IVA?
Yes, on the DGT's position as three transactions: transfer of the plot, advance payment in kind and transfer of the finished homes. For a private individual the transfer of the plot is outside IVA, and ITP is paid.
When does IVA arise in a permuta?
Per the DGT, IVA on the advance payment in kind arises when the plot is received: the developer charges it to the owner. The transfer of the homes is taxed when construction is complete, for the part not covered by the advance.
Who pays ITP in a swap with a private individual?
The acquirer, that is, the developer, on the ATC general scale of 10–13% for transactions from 27 June 2025.
What about the owner's tax if the homes are not built?
The DGT treats termination as a reason to correct the tax on the original transaction. How that is reflected for the owner is determined by the contract and the asesor fiscal.
