IVA on Driveway and Patio Renovation: Which Rate Applies to You?
Spanish IVA on renovation work is charged at the general rate of 21% unless the conditions for the reduced 10% rate are all met. Our guide price of approximately €15/m² is always quoted + IVA, and the written quote states which rate applies to your job.
Send us a photo and the m²Why are your prices shown + IVA?
Because Spanish law requires that, where prices are shown, it is clear whether they include the applicable taxes. Article 10.1.f of the LSSI (Ley 34/2002) sets this out for online services, and the "+ IVA" wording meets it.
Showing the price before tax also makes sense for our clients, because the rate can differ from one job to the next. A single all-in figure would be wrong for some of them.
What is the general IVA rate on renovation work?
The general rate is 21%. Article 90.Uno of the VAT law (Ley 37/1992) states that the tax is charged at 21% except as provided in the following article, which sets out the reduced rates.
If a job does not meet the conditions for a reduced rate, 21% applies. That is the safe assumption for any budget until the conditions have been checked.
When can the reduced 10% rate apply?
Article 91.Uno.2.10º applies 10% to renovation and repair works on buildings, or parts of them, used as dwellings, when all three of the following are met. The Agencia Tributaria page on renovation works lists them.
- The client is a private individual who is not acting as a business or professional and uses the dwelling privately. The tax authority also extends this to communities of owners.
- The construction or renovation of the dwelling was completed at least two years before the work starts.
- The contractor either supplies no materials or, if it does, their cost does not exceed 40% of the taxable base.
If any condition fails, the job is taxed at 21%. The ruling DGT V1656/2025 reproduces the articles in full.
Does the 10% rate cover a driveway, garage or patio?
This is the honest answer: we do not know for certain. The tax agency page we checked does not address whether annexes such as garages, patios and driveways count as part of the dwelling (to be verified).
What do the two rates mean in euros?
The difference is easy to calculate from the guide rate of €15/m². The table shows a few common sizes at both rates.
| Area | Before IVA | At 21% | At 10% | Difference |
|---|---|---|---|---|
| 40 m² | €600 | €726 | €660 | €66 |
| 80 m² | €1,200 | €1,452 | €1,320 | €132 |
| 150 m² | €2,250 | €2,722.50 | €2,475 | €247.50 |
| 400 m² (community) | €6,000 | €7,260 | €6,600 | €660 |
To run the numbers for your own area, use the quote calculator, which shows both totals side by side.
Does it matter if my villa is a second home or a rental?
The first condition refers to a private individual using the dwelling for private use. How that applies to a second home is a question for your tax adviser; we do not give tax advice beyond what the official sources say.
For rentals, a recent decree, described below, would extend the 10% rate to works on homes let for habitual residence. Until that is confirmed, owners of let properties should assume 21% unless their adviser says otherwise.
What is changing with RDL 29/2026?
Real Decreto-ley 29/2026 of 6 October (BOE of 7 October 2026), with effect from 1 December 2026, extends the 10% rate to works on homes intended for habitual rental. It also adds a requirement that payment is made by bank means: card, transfer, nominative cheque or deposit into an account.
That payment requirement would also apply to works on homes for private use. As of 4 November 2026, the decree still had to be validated by Congress; the vote was scheduled for 12 November 2026, according to Moncloa.com.
How does a community of owners fit in?
The tax authority's interpretation extends the first condition to communities of owners, so a community refreshing shared areas of a residential building may qualify for 10% if the other conditions are met. The garage question above still applies (to be verified).
Our communal garage quote page explains how we prepare budgets for administrators, and our guide on getting a communal budget approved covers the voting rules.
What should I do before accepting a quote?
Check the three conditions against your situation and, if you are unsure, ask your adviser. Tell us when you request the quote whether you believe the 10% rate applies, and we will state the rate and the reasoning on the document.
For the cost side of the decision, the driveway painting cost page shows how the base figure is built before any tax is added.
Frequently asked questions
What IVA rate applies to driveway painting in Spain?
The general rate is 21%. A reduced 10% rate applies to renovation and repair works on dwellings when the client is a private individual using the home privately (or a community of owners), the dwelling is at least two years old and materials do not exceed 40% of the taxable base.
Does the 10% rate apply to a driveway?
It is not certain. The tax agency page we checked does not say whether annexes such as driveways, garages and patios count as part of the dwelling, so this point is still to be verified. Confirm it with your tax adviser before budgeting at 10%.
How much is IVA on a €600 job?
At 21%, IVA is €126 and the total is €726. If the reduced 10% rate applies, IVA is €60 and the total is €660. A €600 job corresponds to about 40 m² at the guide rate of €15/m², before any adjustment for condition or access.
Why do you quote prices + IVA?
Spanish law (art. 10.1.f of the LSSI) requires that, where prices are shown, it is clear whether they include taxes. Quoting + IVA also lets us apply the correct rate per job, since some clients qualify for 10% and others pay 21%.
What is the 40% materials condition?
For the 10% rate, if the contractor supplies materials, their cost must not exceed 40% of the taxable base of the job. If it does, the job does not qualify and 21% applies. The rule comes from article 91.Uno.2.10º of the VAT law.
Can a community of owners pay 10% IVA?
According to the tax authority's interpretation, communities of owners can meet the first condition for the reduced rate. The building age and materials conditions must also be met. Whether communal garages qualify as part of the dwelling is still to be verified.
What is RDL 29/2026?
A decree-law of 6 October 2026, effective from 1 December 2026, that extends the 10% rate to works on homes for habitual rental and adds a bank-payment requirement. As of 4 November 2026 it still needed validation by Congress, with the vote scheduled for 12 November 2026.
Will I need to pay by bank transfer?
If RDL 29/2026 is validated, the reduced rate would require payment by bank means: card, transfer, nominative cheque or deposit into an account. That would apply to private homes as well as rentals. If it lapses, the existing conditions remain.
Is my holiday let eligible for 10%?
We cannot say. The current conditions refer to private use by an individual, and the pending decree refers to homes for habitual rental. How a holiday let fits these rules is a question for your tax adviser; we will apply the rate they confirm.
Who decides which rate goes on my invoice?
The rate depends on the facts of the job and the client. We state the rate we apply on the quote and explain the reason. If you believe the reduced rate applies, tell us when you request the quote and confirm the details with your adviser.
Related services
Sources
- Agencia Tributaria – VAT rate for renovation and repair works on dwellings
- DGT binding ruling V1656/2025 (reproduces arts. 90 and 91 of Ley 37/1992)
- Agencia Tributaria – VAT regulatory changes 2026
- Economist & Jurist – RDL 29/2026
- Moncloa.com – housing decrees in Congress on 12 November
- Ley 34/2002 (LSSI), consolidated text