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V2484-21 30 September 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Reduced 10% VAT rate applicable to residential renovation or refurbishment works under specific requirements

An individual has requested clarification regarding the VAT rate applicable to refurbishment works on their property (roofing, lift, and electrical systems). The DGT outlines the requirements for applying the 10% reduced rate to both refurbishment projects and renovation or repair works.

The question raised

Question posed: Tax rate applicable to the described works for Value Added Tax purposes.

The DGT's ruling

To apply the 10% rate for rehabilitation, the primary object must be reconstruction (more than 50% of the cost in structural elements, facades, or roofs) and the cost must exceed 25% of the value of the building excluding the land. Alternatively, for renovation and repair works, the recipient must be a natural person or a community of owners, the dwelling must be at least two years old, and the cost of the materials supplied cannot exceed 40% of the taxable base.

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