Solar construction-tax relief
People and entities installing voluntary solar systems for their own energy use in Valencia can reduce the ICIO construction tax attributable to that work by 95%.
Questa opportunità è attualmente disponibile in inglese.
This relief covers solar equipment that produces electricity or heat for your own consumption. Ayuntamiento de Valencia reduces the Impuesto sobre Construcciones, Instalaciones y Obras (ICIO), the municipal tax on construction, installation and building work. This entry covers work that can lawfully proceed through a declaración responsable or comunicación previa: a works declaration or prior notice submitted to the municipality.
The 95% reduction applies only to the tax attributable to work strictly for the solar installation. If you also receive a special municipal-interest or public-benefit reduction under Article 6.2.A, the solar reduction applies to the tax remaining after it.
ICIO is calculated at 4% of the taxable material-execution cost: the cost of carrying out the work itself. VAT and similar taxes, related local public charges, professional fees, the contractor’s profit and other costs outside material execution are excluded. The 95% relief reduces this tax, rather than paying 95% of your installation bill.
The initial tax payment is subject to a final municipal check of the actual cost. The municipality can collect an additional amount or return the relevant difference. If an approved project change increases the budget, you must submit and pay a supplementary self-assessment for the increase.
Eligibility
- The installation must be in the municipality of Valencia and produce solar heat or electricity for self-consumption.
- You can claim as the taxpayer bearing the cost of the work, whether or not you own the property, or as a substitute taxpayer in the circumstances below. Individuals, legal persons and tax entities can qualify. Tax entities include estates awaiting distribution, co-owned assets and other economic units or separate taxable estates without legal personality. If the cost bearer does not carry out the work, the person filing the works declaration or prior notice, or carrying out the work, can be liable as a substitute taxpayer.
- The solar system must have the competent administration’s approval. You must demonstrate compliance with an installation certificate validated by the authorized body and an itemized budget explaining the qualifying solar-work cost.
- Solar installations required by law do not qualify. Installing more capacity than the law requires does not make a mandatory installation eligible.
How to apply
- Stato
- Aperto continuamente
- Restrizioni del bando
- Only the lawful works-declaration or prior-notice route is covered here. Submit the relief request and paid ICIO self-assessment together with that declaration or notice.
Submit the solar ICIO relief request to Ayuntamiento de Valencia at the same time as the works declaration or prior notice, together with the paid ICIO self-assessment: the tax calculation you submit and pay yourself. This is the filing trigger for this route. ICIO becomes due when work starts; the filing date of a declaration or prior notice is presumed to be the start date unless proved otherwise.
Use the official solar ICIO procedure page and select “Iniciar trámite”. Identify yourself, complete the form, attach the documents and sign electronically. If you apply through a representative, provide the required proof of representation. Legal persons, entities and professionals must submit electronically; individuals may also submit the general application at the municipal register with the supporting documents.
Include the project endorsed by the relevant professional college, its itemized installation budget, evidence of solar self-consumption, the validated installation certificate and the tax self-assessment. Include the licence identifying the property’s use.
The municipality has up to six months to decide. If no decision has been notified by then, you may treat the request as rejected; silence is not approval.
If your work is new construction, comprehensive rehabilitation or a general refurbishment, submit a declaration of its actual cost and supporting documents through the municipal register within one month from the day after completion. If the actual cost is higher than the amount used in your paid tax assessment, submit and pay a supplementary assessment for the increase at the same time as that declaration.