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Rehabilitation: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Refined position High confidence 35 rulings · 2014–2026

Current position

To apply the reduced rate of 10% for renovation and repair works, the recipient must be a natural person for private use or a community of owners. The cost of materials, including subcontracting, cannot exceed 40% of the taxable base. Furthermore, the construction or rehabilitation of the building must have concluded at least two years before the start of the works.

The DGT's position has moved from treating rehabilitation generically within the scope of IRPF (Personal Income Tax) and IVA (VAT), to establishing very specific technical and temporal requirements. Quantitative thresholds for material costs and qualitative requirements regarding the structure have been introduced to distinguish rehabilitation from mere renovation or repair.

Turning points

  1. V0341-22

    Establishes strict requirements for the IVA exemption, requiring that the rehabilitation meets a qualitative criterion of structural elements and a cost exceeding 25% of the acquisition price.

  2. V3160-23

    Introduces the temporal requirement that the construction or rehabilitation of the building must have been completed at least two years before starting the renovation works.

Analysis based on 34 of 35 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V1007-26 6 May 2026

Reduced 10% VAT applies to self-use residential construction

SG de Impuestos sobre el Consumo
autopromocióntipo reducidoejecución de obraaptitud para viviendapromotor LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 5.uno
Affects CompanyExpat · Non-residentIndividual
V1366-21 12 May 2021

Surveying services for a renovation project subject to 21% VAT

SG de Impuestos sobre el Consumo
tipo reducidoejecución de obrapromotorrehabilitaciónhonorarios profesionales LIVA — Ley 37/1992 del IVA art. 90LIVA — Ley 37/1992 del IVA art. 91.Uno.3.1º
Affects CompanyExpat · Non-residentIndividual
V2512-19 17 Sept 2019

Architecture and site supervision fees subject to 21% VAT

SG de Impuestos sobre el Consumo
tipo impositivoejecución de obrahonorarios profesionalesdirección de obratipo reducido LIVA — Ley 37/1992 del IVA art. 90.1LIVA — Ley 37/1992 del IVA art. 91.1.3
Affects CompanyExpat · Non-residentIndividual
V1513-19 24 Jun 2019

Standard 21% VAT rate applies to water piping works for housing

SG de Impuestos sobre el Consumo
tipo impositivoejecución de obrapromotorcanalización de aguastipo reducido LIVA — Ley 37/1992 del IVA art. 90.1LIVA — Ley 37/1992 del IVA art. 91.1.3.1º
Affects CompanyExpat · Non-residentIndividual

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