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A professional providing legal and tax advice to foreigners purchasing property in Spain has requested clarification on VAT liability. The Directorate-General for Taxes (DGT) has ruled that pure legal advice is not subject to VAT if the client is not resident in Spain; however, services directly linked to real estate transactions are subject to tax.
This ruling clarifies the distinction between general legal consultancy and specific property-related services for non-residents, affecting how VAT is applied to professional fees in cross-border real estate transactions.
The tax team reviews your specific situation.
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