Skip to content
Back to index
V3219-17 15 December 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · rehabilitación de edificaciones

Reduced 10% VAT rate applies to residential renovation works meeting qualitative and quantitative requirements

An individual requested clarification on the VAT rate applicable to renovation works on their primary residence when acting as a developer. The DGT ruled that a 10% rate applies if reconstruction and cost requirements are met, whereas a 21% rate applies to subcontractors or the direct supply of materials.

The question raised

Applicable tax rate for the execution of rehabilitation works on a primary residence.

The DGT's ruling

To apply the 10% rate to rehabilitation works, two phases must be met: a qualitative phase, where more than 50% of the cost is incurred on structural elements, facades, roofs, or analogous/connected works; and a quantitative phase, where the cost exceeds 25% of the value of the building (excluding the land). This rate applies to direct contracts between the developer and the contractor, including the installation of kitchen and bathroom cabinets, but not to household appliances or the delivery of materials by suppliers to the developer.

Book your free first meeting