In the Canary Islands renovations are taxed under IGIC (Canary Islands General Indirect Tax), not VAT. The general rate is 7%, but qualifying primary-dwelling renovation works may benefit from a reduced 0% or 3% rate, which can mean a significant saving. Several requirements must be met.
Requirements for the reduced rate
- The home must be the client's primary dwelling and meet the program conditions.
- The client must be a private individual or residents' association using the property as housing.
- The cost of materials supplied by the company must stay within the limits set for the works to count as a renovation rather than a supply of goods.
Example
In a EUR 20,000 renovation of a qualifying primary dwelling, the reduced IGIC rate may apply to the labour-led works, while general purchases of goods are taxed at the standard 7%. We confirm the exact treatment for your project.
At Ecoinnova we verify your case and show the correct IGIC in the quote. You can also see our energy retrofit service and related grants.
Ecoinnova team
Full-renovation and interior-design studio in Gran Canaria. 11 years managing projects with one goal: no renovation should ever scare the client.
