How to receive a reduced VAT rate for renovation work on residential property

The reduced VAT rate provided for in Article 56 bis of the Turnover Tax Code applies to improvements, conversions, alterations and maintenance work on residential properties that have been completed for more than two years, subject to certain conditions. To qualify for the reduced rate, you must confirm that these conditions have been met.

This reduced rate does not apply to the following:

• Premises other than the residential property where the renovation work is completed
• Properties that were completed less than two years ago
• Renovation work that produces a new building, i.e. work that transforms the structural elements (the majority of the foundations or other elements that determine the strength and rigidity of the building or the appearance of the facades, excluding the rendering) or at least two-thirds of each of the finishing elements
• Increasing the floor area of existing properties by more than 10%
• Raising the height of the building or extending the existing structure
• Any work that involves cleaning, landscaping and maintenance of green spaces, or the supply of household equipment, furniture or major equipment (heating systems, lifts, bathroom facilities, such as ready-to-install steam rooms or saunas)

There are two types of certificates available:

• A simplified certificate for all work that does not affect any of the structural elements and no more than five of the following six finishing elements over a two-year period:
  • Non-load-bearing floors, i.e., floors that do not contribute to the strength or rigidity of the structure
  • External door and window frames
  • Internal walls
  • Plumbing and sanitary installations
  • Electrical installations
  • Heating systems
• A standard certificate should be used in all other cases that are not covered by the simplified certificate

To get this form you can either: 

• Download it here

• Or collect it from the Department of Tax Services

You must provide the contractor undertaking the work with the completed, dated and signed certificate prior to invoicing, at the latest. If there is more than one contractor, an original copy of the certificate must be given to each.

You must retain a copy of the certificate and all the invoices or notes issued by the contractor(s) who carried out the work until 31 December of the fifth year following the completion of the renovations. These documents must be produced if the authorities request evidence that the reduced VAT rate has been applied and how the specified amounts have been determined.