What rate applies to works on dwellings?
Information on rates applicable to various works on dwellings
Construction or rehabilitation works
The following operations are taxed at the reduced rate (10%):
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Execution of construction or rehabilitation work of buildings intended mainly for housing , including premises, garages and annexes, as a result of contracts directly formalized between the developer and the contractor. (The reduced rate does not apply to subcontractors). Buildings in which at least 50% of the constructed area is intended for such use are considered to be primarily intended for housing.
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Sales with installation of kitchen and bathroom cabinets and built-in cabinets for homes , consequence of contracts directly formalized between the promoter of the construction or rehabilitation and the contractor.
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Execution of work directly formalized with Communities of Owners for the construction of garages in buildings intended primarily for housing, provided that they are carried out on common land and the The number of places to be allocated to each owner does not exceed two.
The delivery without installation of doors, windows, cabinets, kitchen furniture, etc., to carry out works on buildings will in any case be taxed at the general rate of 21%, given that it is not considered execution of work.
It is considered construction, and 10% is applied, to the extension of a home whenever it increases the living area. Interior renovation work on a home is not considered construction.
Rehabilitation works
To determine if the works carried out are rehabilitation and are taxed at the reduced rate of 10%, two requirements must be met:
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That more than 50% of the total cost of the rehabilitation project corresponds to works to consolidate or treat structural elements, facades or roofs or to works analogous or related to rehabilitation works.
For these purposes, it will be necessary to avail of sufficient items of proof to certify the true nature of the projected work, such as, inter alia, professional statements specifically issued or project visa and, if applicable, the project certification by a professional association.
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If the first requirement is met, the total amount of the total works must exceed 25% of the acquisition price of the building (if it was carried out in the two years prior to the start of the rehabilitation works), or the market value of the building before its rehabilitation, discounting in both cases the value of the land.
Works similar to rehabilitation
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Those of structural adaptation that provide the building with conditions of constructive safety, so that its stability and mechanical resistance are guaranteed.
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Those of reinforcement or adaptation of the foundation, as well as those that affect or consist of the treatment of pillars or slabs.
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Those for expansion of the built surface, above and below ground.
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The reconstruction of facades and interior patios.
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Those for the installation of lifting elements, including those intended to overcome architectural barriers for use by the disabled.
Works related to rehabilitation
Work related to rehabilitation will be considered to be the work listed below when the total cost is below the cost of work carried out on consolidation or treatment of structural elements, façades or roofing and similar work to this, if any, provided they are connected indivisibly thereto and not merely consisting of finishing or embellishment of the building or simple maintenance or painting of the façade:
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The works of masonry, plumbing and carpentry.
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Those intended for the improvement and adaptation of enclosures, electrical installations, water and air conditioning and fire protection.
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The works of energetic rehabilitation.
Energy renovation work will be deemed to be work carried out to improve the energy performance of buildings by reducing energy needs, increasing the performance of heating systems and installations, or installing equipment that uses renewable energy sources.