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V5209-16 5 December 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · mediación

VAT on real estate mediation is taxed where the property is located

A real estate brokerage firm has requested clarification regarding the VAT treatment of its mediation services for residential leases. The DGT has ruled that these services are deemed to be related to real estate, and their place of supply depends on the location of the property.

The question raised

Tax treatment of operations carried out in favor of lessees and lessors.

The DGT's ruling

Mediation services in the leasing of real estate are classified as services related to real estate. Therefore, they shall be deemed to be performed within the territory of application of the tax when the real estate is located within said territory, regardless of the status or location of the recipient. Mediation services in hotel accommodation or equivalents are excepted from this rule when the intermediary acts on behalf and for the account of a third party.

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