Construction, installation and works tax (ICIO)

This tax is payable by anyone who carries out any construction, installation or work that requires a building permit or urban development licence, whether or not they own the property in question, and regardless of whether or not this licence has been obtained.

Payment must be made for:

• New floors and building extension works, as well as those necessary to implement, extend, modify or renovate installations of any kind.
• Works to modify or renovate the structure, the external appearance, the interior of buildings, or installations.
• Temporary works.
• Construction of driveways.
• Specific urban development works not included in an urban development project.
• Earthworks such as clearing, levelling, excavation and earth filling, unless these works are detailed and scheduled as works to be carried out in an approved or authorised building project.
• Works to enclose plots and land and the installation of fences.
• Implementation, extension, modification, replacement or change of location of the technical installations of public services.
• Temporary installations. -Installation, alteration or any other modification of advertising media visible from the public highway.
• Underground installations for parking; industrial, commercial or professional activities, public services or any other use.
• Any other project involving constructions, installations or worrks established by the planning regulations or by the byelaws applicable thereto as being subject to municipal licensing.
• Technical or industrial installations for production processes requiring works or installations.

To calculate the amount, a tax rate of 4% is applied to the cost of the material execution* of the works.

*The material execution cost is the amount of the cost of materials and labour required to carry out the work.

The following works are not subject to this tax:

• Works inside dwellings, premises, lobbies and communal staircases that do not modify the layout, structure or façade in buildings that are not listed (A and B), protected for urban development purposes (C) or considered level D buildings for urban development purposes.
• Installation of motors for small household appliances and ventilation in dwellings.
• Works to develop, construct or demolish a building by municipal order, to be managed by City Council’s technical services.
• Cleaning and repairing gardens and plots of land, without felling any trees.
• Removal, modification or renovation of entrances in order to adapt them to the new byelaws.
• Creation of space in buildings for separate waste collection bins and bicycle parking.
• Removal of advertising signs.
• Adaptation to thermal and acoustic insulation measures, (if this work is not part of larger-scale works or constructions).
• Constructions, installations and works carried out on the public highway by private individuals or by utility companies, which are part of the works necessary to open trenches and shafts, place support poles or make pipelines and connections. And, in general, any removal of pavements (such as those necessary to replace, reconstruct or fix what may have been damaged by such trenches).
• Dismantling and modification without visual impact of radio communications installations.

The following are exempt from the tax:

• Constructions, installations or works owned by the Spanish state, the autonomous communities or local authorities which, although subject to this tax, are used directly for roads, railways, ports, airports, waterworks, and sanitation services and wastewater treatment for towns (even if managed by autonomous bodies). The tax exemption applies to both new investment works and conservation works.
• Buildings, installations and works owned by the Holy See, the Bishops’ Conference, dioceses, parishes and other regional districts, as well as religious orders and congregations and institutes of consecrated life and provinces and their houses, in accordance with Article IV.1.B) of the agreement between the Spanish State and the Holy See on economic affairs.