Difference Between ICIO and Building Permit: What You Need to Know

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When planning renovations, constructions, or installations, permits and approvals are essential. Skipping these requirements can lead to significant fines. Two of the most important are ICIO and the building permit, which may seem similar at first glance but serve very different purposes.

What is ICIO and what is a building permit?

ICIO (Construction, Installations, and Works Tax): A municipal tax paid for carrying out works within a city or town. Its main purpose is to fund municipal expenses related to urban development.
Building permit: An administrative authorization that legally allows you to carry out the construction, renovation, or installation. Without this permit, the work is considered illegal, even if the ICIO has been paid.

Key point: Paying ICIO does not replace the need for a building permit. Both are complementary: the tax covers the fiscal contribution, and the permit ensures the project is legal.

Main differences between ICIO and building permit

Concept	ICIO	Building Permit
Nature	Municipal tax	Administrative approval
Purpose	Fund municipal expenses for construction	Legally authorize the work
Responsible party	Property owner or project holder	Applicant (owner or promoter)
Documentation	Tax payment according to municipal rules	Submission of plans, technical report, and municipal fees
Exemptions	Public administration works, Catholic Church, and possible municipal discounts	No mandatory exemptions

Exemptions applicable to ICIO but not to the building permit

ICIO includes certain mandatory exemptions, unlike the building permit:

Works promoted by public administrations
Works carried out by the Catholic Church

Additionally, municipalities may establish specific tax reductions in their local ordinances. To know the exact requirements and benefits, check the official website of the local town hall.

✅ Conclusion:
For any project, you must both pay ICIO and obtain the building permit. Ignoring either can lead to fines or legal issues, so plan your work carefully and ensure full compliance with municipal regulations.