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V0368-22 24 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · servicios relacionados con bienes inmuebles

Legal services location depends on immovable property link

A consultant provides legal services to residents in Gibraltar and the UK on property and tax matters. The DGT states that VAT liability in Spain depends on whether the service is considered related to immovable property or follows general location rules.

The question raised

Liability for Value Added Tax on the described services.

The DGT's ruling

Legal services related to the transfer of title or rights over real estate in Spain are considered services related to real estate and are taxed in Spain. Other services, such as general tax advice or management of Form 210, are located according to the general rules for services. For services provided to entrepreneurs outside the EU, the rule of effective use and enjoyment in Spanish territory may apply if their economic utilization here is demonstrated.

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