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ICIO – Tax on Construction, Installations and Works

What is ICIO?

ICIO is a facultative tax levied on construction, installations and works, for which a building or works permit issued by a local council must be obtained.

Who must pay this tax?

ICIO must be paid by the proprietors of the construction, installations or works, as the liable persons, whether or not they are the owners of the building involved.

However, if the construction, installations or works are not carried out by the proprietor, the persons who apply for the corresponding permits or who carry out the construction, installations or works are considered those accountable for paying the tax.

When must it be paid?

Each local council sets due dates in its tax byelaws. After the deadline for payment, the tax will be enforced, with corresponding surcharges and interest for late payment.

Consult local tax calendars

Where and how must it be paid?

At the collaborating entities listed on the official payment form using one of the following methods of payment:

  • In person, at branch offices of the financial institutions.
  • ATM, if the collaborating entity offers this service.
  • Phone banking, if the collaborating entity offers this service.
  • Internet, by bank transfer or using a debit or credit card.

Go to Payment of taxes and other revenue.

The official payment form sent by BASE via surface mail, is needed to complete the transaction. If you do not receive this form you can request a copy from any of the BASE offices.

Sample official payment form (pdf)

Notice: Payment must be made within the period stipulated on the official payment form. After this period you can request a new document, depending on the status of your tax file.

Regulation of ICIO

ICIO is regulated by:

  • The Texto Refundido de la Ley Reguladora de las Haciendas Locales (Revised text of the Regulatory Law of Local Revenue Agencies), approved in the Royal Legislative Decree 2/2004, of 5 March (articles 100 to 103, additional administrative orders 10 and 12, temporary administrative orders 4, 13 and 17, and the single, final administrative order);
  • The tax byelaws of the local councils, where taxation percentages and relief can be set (within the limits established by law) and concrete matters and formalities for management and collection are determined.

FAQs - Frequently asked questions

1. What is provisional payment on account?

2. What is the base for provisional payment on account?

3. When is the final payment made?

4. Does payment of the tax imply concession of the licence?

5. When is a licence needed?

1. What is provisional payment on account?

This is the payment of a provisional amount for tax at the start of the construction, installation or works, or at the time when the licence is obtained. It is discounted from the final amount to be paid, or the difference is returned if the final amount is less.

2. What is the base for provisional payment on account?

The tax base for provisional payment on account is determined from the following:

  • The budget presented by the interested parties, stamped by the corresponding professional association when this is a pre-requisite.
  • The indexes or modules in the corresponding tax byelaw.

3. When is the final payment made?

The full tax must be paid once the construction, installation or works have been finalised, and prior to the prescriptive date which is established in article 66 de la Ley General Tributaria (four years), from the date of finalisation.

4. Does payment of the tax imply concession of the licence?

Payment never implies concession of the licence (High Court ruling, 4 November 1997).

5. When is a licence needed?

The autonomous communities are responsible for matters of urban planning and development, and each one set the regulations for the works that require a licence.

In Catalonia, the regulation is included in the Decreto Legislativo (Legislative Decree) 1/2005, 26 July, in which the Texto Refundido de la Ley de Urbanismo Catalana (Revised Text of Urban Planning in Catalonia) was approved. Article 179 establishes that a licence is needed for the following:

  • Division of land into building plots.
  • New constructions and those of extension, reform, modification or renovation, of existing constructions and installations. In these cases, the licence must include the number of flats or business premises planned.
  • Total or partial demolition of constructions and buildings.
  • Specific development works not included in a development project.
  • First use or occupation and change of use of the buildings and installations.
  • Land preparation and removal or levelling works on any land.
  • Authorisation of works and provisional use, in agreement with this Law.
  • Extraction of aggregates and exploitation of quarries.
  • Storage of rubble and deposition of materials which affect the landscape characteristics.
  • Construction or installation of walls and fences.
  • Opening, surfacing or modification of rural paths.
  • Installation of prefabricated and similar buildings, whether provisional or permanent. o Installation of greenhouses or similar structures.
  • Felling of woodland, shrubs or individual trees, in those cases where it is called for by urban planning.
  • Putting up advertising posters or boards, visible from the public highway.
  • Installations and works which affect the subsoil.
  • Installation of electricity, telephone or other lines, and of aerials or any kind of telecommunications equipment.
  • Subdivision of a structure into individual flats or the opening of a private estate , or modification of these involving an increase in number of dwellings or business premises, as well as operations to take advantage of more elements, independent from those which figured in a preceding declaration of new works. A further licence is not necessary if the existing one includes the number of individual units for independent use.
  • All other actions for which a licence is required by urban planning or municipal byelaws.