5% VAT (instead of the full rate is 19%) will apply to the first 130 sq m of a first home (homes and apartments) with a value up to €350,000, provided that the total value of the transaction does not exceed €475,000 and that the total buildable area does not exceed 190 square m.
Property worth up to €475,000 with an area up to 190 square meters, would have 5% VAT for the first €350,000, and the remaining €125,000 would be taxed with a 19% VAT.
Persons with a disability may enjoy the discounted VAT to the first 190 sq m of the buildable area.
The law also provides a transitional period for the market. The new rules exclude the cases with an issued town planning permit or with application for a town planning permit filed within four months the new law is active.
