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V1501-22 23 June 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · intermediación inmobiliaria

Mediation services for real estate transfers are taxed where the property is located

A EU entity has enquired whether brokerage services for transferring real estate in the Canary Islands are subject to VAT. The DGT has ruled that these services are deemed to be related to real estate and are performed where the property is situated.

The question raised

Liability for Value Added Tax on the intermediation services in the aforementioned transfer.

The DGT's ruling

Mediation services in the transfer of real estate are services related to real estate. Therefore, they are understood to be performed and subject to Tax in the place where the real estate is located. This special localization rule prevails over the general rule for the provision of services.

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