What rate applies to works on dwellings?

Renovation or repair works

As a general rule, the applicable rate will be the general rate (21%).

However, renovation and repair work carried out on buildings intended primarily for housing will be taxed at a reduced rate (10%) if the following requirements are met:

That the recipient is a natural person and uses the home for his/her personal use. If the dwelling is used for renting or for carrying on a business or professional activity (even partially), the reduced rate does not apply.

That the construction or rehabilitation has been completed at least two years before the start of the renovation or repair works.

That the person carrying out the works does not provide materials for its execution or, in the event that they do provide them, their cost does not exceed 40 percent of the taxable base of the operation.

For example:

Installation of flooring in a home for 10,000 euros, of which 3,000 euros corresponds to materials provided by the business or tradesperson undertaking the project, will be taxed in full at the reduced rate.

A project totalling 10,000 euros, if the materials provided amount to 5,000 euros, is, however taxed at the general rate.