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V1946-14 17 July 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · rehabilitación de edificaciones

10% reduced VAT rate applicable to facade works if classified as rehabilitation or renovation and meeting requirements

A homeowners' association has enquired about the VAT rate applicable to facade repair works on a building over 70 years old. The DGT clarifies that the 10% rate may be applied if the works qualify as rehabilitation or as renovation and repair, provided they meet the established cost and material thresholds.

The question raised

Question raised: Applicable tax rate for the described works.

The DGT's ruling

To apply the 10% rate as rehabilitation, the project must be qualitatively a reconstruction (more than 50% of the cost in structural elements, facades, or roofs) and quantitatively exceed 25% of the value of the building excluding the land. As renovation and repair works, the recipient must be a community of owners or a natural person, the building must be at least two years old, and the cost of materials cannot exceed 40% of the tax base.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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