Taxes take into account the rehabilitation of buildings

Taxes that hinder the rehabilitation of buildings

They say the rehabilitation which is the new commitment of the Government in housing. Grants are about; in fact, the Community of Madrid just opened the invitation to apply for aid for rehabilitation edificatoria 2017. An allocation of 14,1 million euros at stake, which is part of the Housing Plan 2013-2016, extended this year.

Nevertheless, taxes rehabilitation works often hinder its implementation.On a budget 100.000 euros, ownership of property located in the district of Carabanchel (Madrid) He has decided to whitewash its building.

These were the numerus clausus to launch the works:

Fee for the provision of urban services: 1.000 euros (1% of the total)
Tax constructions, installations and works (ICIO): 4.000 euros (4%)
Fee for private use or special use of public domain: 500 euros (0,5%).
VAT: 10.000 euros (10%)

as we see, taxes "eat" the 15,5% of total costs. However, Lion spending takes it in the rehabilitation of the bank itself a community. "In this case we asked for a loan amounting 87.000 euros, an interest 6,95% a 96 months ", says the administrator of this farm. The community will have to pay some banking interests 39.000 euros, only this expense representing the 39% the total operation.

Fortunately, this community has achieved grant 36.000 euros from the Community of Madrid, corresponding to the call 2016.

Given this scenario, farms collegiate administrators propose measures to promote the rehabilitation. Among other, Total grant ICIO; removal rates such as use of public domain, levied not only busy sidewalk space with scaffolding, but also the building height; VAT reduction 10 al 7%; or specific financial products.

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