[Amelia Vyvyan]

We are extensively renovating a finca in Mallorca, new roof, repointing, new electrics plumbing etcetc plus a small extension to connect two buildings, landscaping works, exterior wall construction and the build of a new pool.
Initially our builder quoted 10% IVA but this morning he said he has had to increase it to 21%
Where Can I find the rules and regs? I read somewhere that if the renovation is costing more than 50% of value then this is classed in the 10% bracket? Or is it totally taken on footprint?
I’d really appreciate any help in this matter as obviously our budget has just been blown by 11% Thank you

[mh]

I can confirm that if a contractor RENOVATING your property provides BOTH materials and services, you need only pay IVA of 10%. I have just spent a very large amount of money renovating a house in Spain and all works were billed at 10%.

It was a contractor who first told me about the 10% rule but I then had to educate all the other contractors involved in the works. I checked the web and a local lawyer before starting the works, and everything tallied.

Unfortunately, I can not quote you a source as the relevant papers are in my house in Spain and I am outside the country. Good luck.

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