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V0098-24 15 February 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación inmobiliaria

Intermediary must charge VAT to property owner

A property owner renting via a foreign website asks whether the passive investor rule applies. The DGT states that real estate intermediation is excluded from this rule, and the foreign intermediary must charge VAT.

The question raised

A- Whether the consultant is obliged to the imposition of Value Added Tax for the consulted intermediation operations.

The DGT's ruling

Intermediation services in the leasing of real estate are subject to VAT in the territory where the property is located. Since January 1, 2023, the reverse charge mechanism is excluded for these intermediation services provided by non-established taxable persons. Therefore, the foreign company must charge VAT to the consultant, and the consultant must rectify the invoice if it was not applied.

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