Problems with homes’ VAT exemption

Complications are emerging in the introduction of the measure suspending the 24 percent value-added tax on transactions involving properties built with a permit issued after January 1, 2006. Sources say a number of technical matters have surfaced that render this favorable regulation rather difficult when it comes to unsold housing stock.

As a result, various alternative scenarios are being examined: The easiest concerns the application of the tax's suspension only for any properties constructed as of the present day, or at least to set the exemption date at the start of the year, to apply to licenses issued since January 2019.

The case of buildings constructed with permits issued before January 2006 that remain unsold is more difficult; they incur VAT unless they constitute primary residences.

Property market professionals say the problem lies in the fact that...