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V0284-25 14 March 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Renovation works in homes may be taxed at 10% IVA if conditions are met

A public official asks what VAT rate applies to renovation work in their home. The DGT explains that reduced rates of 10% may apply if the works are for rehabilitation or renovation and repair under strict conditions.

The question raised

Applicable tax rate for the aforementioned works for the purposes of Value Added Tax.

The DGT's ruling

To apply the reduced rate of 10% to renovation and repair works in dwellings, the recipient must be a natural person using the dwelling for private use, and the construction must have been completed at least two years prior. Furthermore, the cost of materials provided by the contractor must not exceed 40% of the taxable base of the operation. If this limit is exceeded, the general rate of 21% shall apply to the entirety of the works execution.

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