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V0194-25 19 February 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

10% VAT rate applied to renovation works in owner communities under specific conditions

An owner community queries the applicable VAT rate for waterproofing works on a plaza with garages. The DGT states that a 10% rate applies if the building is primarily residential and renovation and repair conditions are met, provided material costs do not exceed 40% of the taxable base.

The question raised

Question raised: Value Added Tax rate applicable to the consulted transactions.

The DGT's ruling

The 10% rate is applicable to renovation and repair works in buildings primarily intended for residential use (at least 50% of the surface area) when the recipient is a homeowners' association. Three requirements must be met: that the construction was completed at least two years ago, that the recipient is the association, and that the cost of the materials provided does not exceed 40% of the taxable base. If the cost of the materials exceeds said limit, the transaction shall be taxed at the general rate of 21%.

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