When you request quotes for painting your apartment, one of the first questions that arises is what VAT you will be charged: the reduced rate of 10% or the standard rate of 21%. The difference can amount to several hundred euros on an invoice, and it is not always clear why one professional tells you one thing and another tells you something different.
The answer is not random nor does it depend on the painter. The reduced VAT of 10% on home improvements is regulated by state law (Law 37/1992 on VAT, article 91), and applies when a series of specific requirements are met. If even one is missing, the entire invoice is taxed at 21%, even if the work is the same.
When the 10% VAT applies to painting your home
For painting work on your apartment to be invoiced with reduced VAT, the contract must be with an individual (not a company), it must be their primary residence, and the property must be over two years old. Additionally, there is an extra requirement related to materials that often goes unnoticed.
Age requirement: why your apartment must be over two years old
The regulation is clear: the construction of the property must have been completed at least two years before the renovation begins. This aims to encourage improvement of the existing housing stock, not new construction. If you have just bought a newly built apartment and want to paint it in the first year, the invoice will be taxed at 21%, even if you are only changing the colour of the walls.
In cities like Madrid, Barcelona or Valencia, where many new apartments are delivered with basic finishes, this detail often surprises buyers who want to personalise the paint colour before moving in.
The 40% limit: when materials make you lose the reduced VAT
Materials supplied by the contractor cannot exceed 40% of the total, and if they do, the entire invoice is taxed at the standard rate of 21%. This means that if the painter charges you 1,000 euros for a job, the paint, primer, filler and other materials that he provides cannot be worth more than 400 euros.
In a standard painting job (sanding, priming, two coats of emulsion paint), materials typically account for between 20% and 30% of the total, so the reduced rate usually applies without issue. But if the quote includes special paints, decorative finishes or many metres of new mouldings and skirting boards, the percentage can increase significantly.
The 40% limit applies to the total renovation budget, not to each individual line item, so although some materials may exceed 40% in specific line items, the reduced 10% VAT can still be applied if the overall material percentage remains below 40%.
When you are charged 21% VAT even though it is your primary residence
There are cases where, even if you meet the age and personal use requirements, the invoice must still be taxed at the standard rate. The most common are:
If you buy the paint yourself from the shop
The purchase of materials from shops or suppliers (tiles, bathroom fittings, parquet, paint) always carries the standard 21% VAT, as this is not a work service but a sale of goods. Even if you then hire a painter to apply it, that purchase is taxed at 21% because you are buying a product, not a renovation service.
Moreover, if you buy the paint yourself and hire only the labour, the painter cannot apply the 10% rate to their invoice, because the regulation requires that the reduced rate applies to complete work executions, not to pure labour supply.
If the apartment is a new building less than two years old
If you carry out renovations on a new building before 2 years have passed since its construction, those works are taxed at 21%. This includes painting, changing floors or any other improvement. The Tax Authority considers that work within this timeframe is finishing of new construction, not renovation of an existing home.
When the contractor is a company or the apartment is for holiday rental
If the invoice is issued to a company, even if the apartment is for residential use, the reduced rate does not apply. The same happens if the property is for economic activity (holiday rental, home office registered fiscally, etc.). If the customer is a company or business entity, the 10% does not apply even if the property is residential.
Special cases: second home and common areas
Contrary to what many people believe, a second residence can qualify for the 10% VAT if it meets all other requirements (over 2 years old, individual owner, materials not exceeding 40%), and it is not necessary that it be the owner's primary residence to apply the reduced rate.
As for common areas, works carried out in common areas of a residential building over 2 years old (stairs, facades, lifts, roofs) can benefit from the reduced 10% VAT if the building's purpose is predominantly residential. This includes painting the entrance hall, staircase or building facade, as long as it is contracted by the residents' association.
How to ensure you are charged the correct VAT from the quote stage
The time to check the VAT rate is not when the final invoice arrives, but when you receive the first quote. These are the practical steps:
Confirm the age of your property in writing
Before accepting a quote with 10% VAT, make sure your apartment is really over two years old since its construction or last renovation. Usually the date shown in the property deed or in the Land Registry data is sufficient.
The professional may ask you for a signed declaration confirming that the property meets the requirements. This is not unnecessary bureaucracy: if the Tax Authority reviews the invoice and discovers the property was under two years old, it is the painter who is responsible, which is why many serious professionals request it before starting.
Ask the quote to itemise materials and labour
Although it is not required that the quote separates both items, it is useful to check that the material percentage is below 40%. If a quote shows only a global figure and then you are charged 21%, it will be difficult to know if that rate really applied or not.
On our platform, painting quotes are always presented after evaluating surfaces (via photos, videos or a visit), and the breakdown of materials and labour is visible to the customer, the professional and the platform. This prevents misunderstandings and allows you to verify from the outset whether the invoice can qualify for the reduced rate.
Check that the VAT rate is clearly stated
A serious quote must state the taxable base, the VAT rate applied (10% or 21%) and the total amount. If the quote does not specify this, ask before accepting. Changing the VAT midway through the work because "requirements were not met" can increase the final price by an additional 11%.
What to do if you have doubts or the professional says they cannot apply the 10%
If you receive quotes with different VAT rates for the same work, it is not that some professionals are cheaper than others: it may be that some are applying the correct rate and others are not. Before choosing based only on the final price, check:
- That all quotes calculate VAT on the same base (some include travel in the taxable base, others list it separately).
- That the professional offering you the 10% has actually verified that your property meets the requirements (it is not enough for you to tell them, they must be able to prove it if the Tax Authority asks them to account for it).
- That the quote details which materials are included and how much they represent of the total.
If a painter tells you they cannot apply the 10% in your case, ask them to explain why. It may be that your apartment is under two years old, that the work includes materials exceeding 40%, or that the invoice must be issued to a company. These are legitimate reasons and it is important to know them in advance, not afterwards.
In any case, VAT is not a minor detail: on a 2,000 euro base job, the difference between 10% and 21% is 220 euros. Ensuring from the outset that the quote applies the correct rate, and that the professional understands why they are applying it, saves you surprises and allows you to compare quotes on an equal footing.
