# IVA on renovation



## skip o (Aug 1, 2011)

I am looking into having someone do some permitted work in my apartment. Knock down some walls, add some walls, paint, plaster, electrical, etc. In your experience does work such as this have an IVA of 21%? I have read conflicting information online. 

edited to add: I see mentions online about reduced VAT on home improvements, but none of it is very detailed. Anyone have any experience with this?


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## snikpoh (Nov 19, 2007)

skip o said:


> I am looking into having someone do some permitted work in my apartment. Knock down some walls, add some walls, paint, plaster, electrical, etc. In your experience does work such as this have an IVA of 21%? I have read conflicting information online.
> 
> edited to add: I see mentions online about reduced VAT on home improvements, but none of it is very detailed. Anyone have any experience with this?


I presume you already have the Obra Mayor licence? This will include the estimated costs and will show what level of IVA is required. Have you asked your architect who applied for the licence (one is required)?

When I've done any renovation work here I've always had to pay the full IVA rate. There was some confusion over what rate to pay but I always ended up paying the full rate on any invoice - even though I tried arguing with the trades.


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## skip o (Aug 1, 2011)

The company claims that it is 21% vat on everything. They haven't received any permits because I haven't agreed to their budget yet.


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## snikpoh (Nov 19, 2007)

skip o said:


> The company claims that it is 21% vat on everything. They haven't received any permits because I haven't agreed to their budget yet.


Just remember (please) that the licences are your responsibility. Yes, you'll need a named builder and an estimate of cost to get the licence but it's for you to do and not the builder.

If it's major work like knocking down walls, then you'll need an architect like I said and he will be able to advise - on all things including IVA rates.


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## skip o (Aug 1, 2011)

The company has already met with my building manager for sure and claims to have met with the city about the work, because it is major. The price of permits is listed in the budget, and they claim that they will get them. Are you saying that is not possible?


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## snikpoh (Nov 19, 2007)

skip o said:


> The company has already met with my building manager for sure and claims to have met with the city about the work, because it is major. The price of permits is listed in the budget, and they claim that they will get them. Are you saying that is not possible?


Getting a licence doesn't cost anything. There may be a tax on the value of the work which, ISTR, is about 1.5%

In Spain, you still need an architect who is licenced as such - maybe your building manager has this in hand.

It's not always guaranteed that you will get the licence but I'm sure your manager/architect will do what's necessary.


I wanted to convert a large building to 7 flats. Each time I submitted the plans, they found a problem which my architect had to resolve. This went on for a good many months and cost me plenty. Finally, they agreed that the plans were fine but then announced that the building was of historic interest and that I now had to employ archaeologists at my expense. As there is a 3 year waiting list for them to come and 'do their stuff', I put the project on hold.


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## skip o (Aug 1, 2011)

Wow, that is quite a story. I'm curious, what are you doing with your building in the meantime? I own a bunch of rentals in the states, but I think I will avoid any sort of flipping or rentals here. Spain is not a business friendly country in many ways.


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## snikpoh (Nov 19, 2007)

skip o said:


> Wow, that is quite a story. I'm curious, what are you doing with your building in the meantime? I own a bunch of rentals in the states, but I think I will avoid any sort of flipping or rentals here. Spain is not a business friendly country in many ways.


Yep, now you're correct. I bought the building in 2007 when things were a lot different.

Isn't hindsight a wonderful thing.

Since then it''s been left empty - now has no electric and no water but still costs me for the annual IBI (about 600€).


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