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V0303-25 17 March 2025 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

IVT rate for solar panel installation may be 10% if rehabilitation or renovation criteria met

A private individual asks what VAT rate applies to installing solar panels in their home. The DGT explains that a reduced rate of 10% may apply if the works qualify as rehabilitation or renovation and repair under specific conditions.

The question raised

Applicable tax rate for Value Added Tax purposes.

The DGT's ruling

To apply the 10% rate as rehabilitation, the works must result from a direct contract and meet qualitative requirements (more than 50% of the cost in structural elements, facades, roofs, or analogous/connected elements) and quantitative requirements (cost exceeding 25% of the value of the property excluding the land). If considered renovation and repair, the recipient must be an individual for personal use, the dwelling must be more than two years old, and the cost of the materials provided cannot exceed 40% of the tax base.

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