What rate applies to works on dwellings?
Information on rates applicable to various works on dwellings
Renovation or repair works
As a general rule, the applicable rate will be the general rate (21%).
However, the execution of renovation and repair work in buildings intended mainly for housing will be taxed at the reduced rate (10%) if the following requirements are met:
That the recipient is a natural person and uses the home for his or her private 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 beginning of the renovation or repair works.
That the person carrying out the works does not provide materials for their execution or, if they do provide them, their cost does not exceed 40 percent of the tax 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.