Tax regulation mechanisms (Allowance on the Tax on Constructions, Installations and Works)

RDL 2/2004

RDL 2/2004 allows local authorities to grant partial allowances on the Tax on Constructions, Installations and Works. This tax is indirect and its taxable event is constituted by the construction, installation or work within the municipal area, for which it is required to obtain the corresponding building or urban license, or for which a prior communication or responsible declaration is required (article 100 RDL 2/2004).
In particular, article 103 of RDL 2/2004 prescribes that the local tax ordinances may grant an allowance of up to 95 percent in favour of constructions, installations or works in which systems for the thermal or electrical use of solar energy are incorporated (only solar energy is contemplated).
Local authorities may apply different requisites and adjust the scope of the benefit.

RDL 2/2004 states that the benefit is for constructions, installations and works for which a building license or a prior communication is required. However, local authorities may restrict the scope because it is an optional allowance, not mandatory (article 103 RDL 2/2004).

Depends on the local authorities, who will pass a local tax ordinance to regulate formal aspects.

Municipalities