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V0298-17 3 February 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · entrega de bienes

Sale of inherited property is exempt from VAT, but real estate agency fees are subject to it

A query was raised regarding whether the sale of an inherited property and the associated real estate agency fees are subject to VAT. The DGT has determined that the transfer of the property is not subject to VAT as it is not carried out by business entities, whereas the agency's mediation services are subject to the standard VAT rate.

The question raised

Question raised: Tax treatment regarding the indicated transaction.

The DGT's ruling

The transfer of real estate is not subject to VAT if the transferors do not hold the status of entrepreneurs or professionals. However, mediation services provided by real estate agents are services subject to tax and are not exempt. Such fees must be taxed at the general tax rate of 21 percent.

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