Impuesto sobre Construcciones, Instalaciones y Obras (ICIO)

The Impuesto sobre Construcciones, Instalaciones y Obras (ICIO), also known as the Tax on Construction, Installations and Works, is a levy imposed on the construction, installation, or expansion of properties in Spain. This guide provides an overview of ICIO in Andalucía, helping you understand your tax obligations when undertaking construction or renovation projects.

Who Pays ICIO?

The responsibility for paying ICIO typically falls on the promotor or developer of the construction project. This could be:

• The owner of the property initiating the construction or renovation.
• A developer or construction company undertaking the project on behalf of the owner.

Taxable Event:

ICIO applies to various construction-related activities, including:

• New construction: This includes the building of new houses, apartments, commercial properties, and other structures.
• Renovations and extensions: Expanding or renovating existing properties, such as adding a room or building an extension, triggers ICIO.
• Installation of certain facilities: Installing certain types of facilities, such as swimming pools, tennis courts, or solar panels, might be subject to ICIO.

Taxable Base:

The taxable base for ICIO is the valor catastral of the property, which is the cadastral value assigned to the property by the local authorities. This value might be lower than the actual market value of the property.

Tax Rates:

ICIO rates vary depending on the municipality in Andalucía. The rates can range from 0.3% to 3.5% of the cadastral value.

Calculating ICIO:

Here’s how to calculate the ICIO amount:

Example: Imagine you’re planning to renovate your property in Andalucía and the cadastral value is €100,000. The municipality where your property is located has an ICIO rate of 2%.

ICIO Calculation: €100,000 (cadastral value) * 2% (tax rate) = €2,000 (ICIO amount)

Important Note: It’s crucial to check with your local municipality’s website or contact them directly for the most up-to-date information on rates, exemptions, and deductions applicable to your specific project.

Payment and Deadlines:

ICIO must be paid within six months of the start of construction or installation. You can usually pay the tax at your local tax office (Oficina de Gestión Tributaria) using various methods, such as:

• Cash
• Credit card
• Bank transfer

Exemptions and Reductions:

While most construction projects are subject to ICIO, there are certain exemptions and reductions available, such as:

• Small-scale projects: Projects with a total value below a certain threshold might be exempt from ICIO.
• Energy-efficient projects: Projects that incorporate energy-efficient measures might be eligible for a reduction in ICIO.
• Social housing projects: Construction of social housing might be exempt from ICIO.

Finding Out More:

• Junta de Andalucía website: The official website of the Andalusian government provides detailed information on ICIO, including rates, exemptions, and payment procedures. Junta Andalucia Website
• Tax Advisor: Consulting a qualified tax advisor can provide personalized guidance on your specific situation and help you determine if you qualify for any exemptions or reductions.
• Spanish Tax Agency (Agencia Tributaria): The Spanish Tax Agency website offers resources on ICIO, including forms and payment information (https://sede.agenciatributaria.gob.es/Sede/en_gb/inicio.html).

Additional Considerations:

• It’s important to factor in additional costs associated with construction projects, such as architect fees, building permits, and materials.
• Consider seeking professional legal and tax advice to ensure a smooth and compliant construction or renovation process in Andalucía.

Conclusion:

Understanding ICIO and its implications for your construction or renovation project in Andalucía helps you make informed financial decisions. Remember, ICIO is a local tax, so it’s crucial to check with your specific municipality for the most accurate information and guidance.