Renovation, Construction Costs & Tradespeople
*Renovating in Mallorca — the decisive IVA lever (10 % vs. 21 %), realistic construction costs, warranty and how to avoid undeclared-labour traps.*
Note: Fee/price figures are market reference values 🟡 — since the 2009/2010 liberalisation, professional chambers may no longer set binding tariffs. Legal statements (IVA, LOE, licences) are documented from primary sources ✅.
Types of Renovation & Permits#
reforma integral(full renovation) vs.reforma parcial(partial renovation) — in practical/
price terms. For the permit, what matters is not the scope but whether structure, façade/ common elements or use are affected → then obra mayor (project + licence); otherwise obra menor (comunicación previa/declaración responsable). (→ Ch. 10)
presupuesto(detailed quote withmediciones/unit prices): obtain at least 3;
a fixed price "a tanto alzado" without an itemised list = risk of extras/sobrecoste.
contrato de obra(works contract): budget, payment schedule, deadlines with penalties forretraso,
who obtains the licences. hoja de encargo = planner's contract (architect/aparejador).
IVA on renovations: 10 % vs. 21 % ✅#
The reduced 10 % rate (instead of 21 %) applies to obras de renovación y reparación (Art. 91.Uno.2.10º LIVA) when all conditions are met: 1. Recipient = private individual (own use) or comunidad de propietarios (not for letting/commercial/developer); 2. dwelling completed at least 2 years ago; 3. Material threshold: materials supplied by the tradesperson ≤ 40 % of the taxable base — otherwise 21 % on the whole transaction.
Saving tip: Buy expensive materials yourself → only the labour is taxed at 10 %. A repair paid directly by the insurer does not qualify for 10 %.
rehabilitación (separate 10 % route): > 50 % of costs structural/building envelope/energy-related and total costs > 25 % of the value (excluding land value).
Construction costs/m² Mallorca 2025 (reference values 🟡)#
| Measure | €/m² |
|---|---|
| Reforma integral, standard | ~650–1,200 |
| Reforma integral, premium/design | up to ~2,000 |
| New-build chalet, basic | from ~1,300 |
| New build, mid-range | ~1,700–2,000 |
| New build, luxury | ~2,200–2,500+ |
Cost drivers: premium materials, hillside location/old-town logistics, municipal requirements. Always obtain several local presupuestos. Budget a reserve of ~10–15 %.
Tradespeople & Architect#
gremio= trade (albañilbricklayer,fontaneroplumber,electricista,pintor…); a
full renovation involves ~7 trades.
autónomovs.empresa: a company = coordination + greater liability assets; an autónomo is often cheaper.- 🟡
sin factura(undeclared work): no warranty, no IVA advantage, no proof in
a dispute — always pay by bank transfer against an invoice. Require the tradesperson's valid seguro RC (communities often demand it before work begins).
- Architect (
arquitecto) +aparejador/arquitecto técnico: project,dirección de obra,
CFO; fee ~3–5 % of the PEM 🟡; visado COAIB for projects requiring a permit.
certificado final de obra(CFO): prerequisite for thecédula/first occupancy in the case of obra mayor (→ Ch. 09/10).
Warranty (LOE Art. 17) ✅#
From the recepción de obra (handover of the works): 1 year (workmanship/finish), 3 years (habitability), 10 years (structure). These are warranty periods (the defect must arise within them); the claim lapses 2 years after the damage occurs (Art. 18 LOE). New build: seguro decenal (→ Ch. 28).
Pitfalls & Subsidies#
- Renovation without a licence → illegal: fine of 50–100 % of the construction value on building land, up to 250–300 %
in protected areas ✅; the penalty legalises nothing (two procedures: sanción + restablecimiento) — otherwise demolition (→ Ch. 09).
- Old town/BIC: additional
informe de patrimonio; façade/windows/materials heavily
regulated (Ley 12/1998 Patrimonio Histórico IB) — check protected status before buying.
- Energy retrofit — subsidies 🟡: Next Generation/PRTR (largely exhausted in 2025,
check 2026), IRPF deduction 20–60 %, IBI bonus (Palma up to 50 %/6 yrs.), ICIO up to 95 %. Sequence: energy certificate before → measure → energy certificate after → application.
❓ FAQ#
How do I get 10 % instead of 21 % IVA on a renovation? Dwelling ≥ 2 years old, private owner-occupier/comunidad as the client, the tradesperson's material share ≤ 40 % of the invoice. Otherwise 21 %.
How long is the tradesperson liable? 1/3/10 years (workmanship/habitability/structure) from handover of the works; claim limitation 2 years.
What happens with a renovation without a permit? Fine of 50–100 % of the construction value (more in protected areas) plus legalisation or demolition.
Sources (selection)#
- Agencia Tributaria (IVA obras, Art. 91 LIVA) · Ley 38/1999 (LOE) Art. 17/18 · Ley 12/1998
(Patrimonio IB) · CAIB/MIVAU (PRTR) · COAIB (visado) · infraccionesurbanisticasmallorca.es