PROPERTY TAXATION

Suspension of VAT on new houses to continue till 2024 at least

suspension-of-vat-on-new-houses-to-continue-till-2024-at-least

The expected extension by two more years of the value-added tax suspension on new buildings, which today concerns construction permits issued up until 2022, should ease the growth rate of real estate prices in the coming years.

The government is set to satisfy a big demand of the market, with builders noting that the impact of the pandemic has interfered with the construction of new houses to be sold without the imposition of VAT, as buying interest diminished considerably in comparison with 2019.

It is therefore likely the suspension of VAT will be extended until at least 2024, with the possible abolition of VAT on property altogether as of 2025.