| VAT on Real Estate: For those buildings for which an application for a town planning permit was submitted prior to the 1.5.2004, no VAT is charged in the event of a sale. For those after the above date, a VAT of 15% is charged.
In case of a house purchase which is classed as the main/permanent resident of the purchaser, and provided that it is not larger than 250m², the VAT is refunded up to 10% (out of the 15%). This means that the VAT must be fully paid and then the Authorities will require proof that the applicant is using the property as his main/permanent residence (must live in the house 186 days per annum), before they make the refund of 10% (i.e., 2/3 of the VAT tax paid).
The return of the VAT applies for houses/flats with an area of up to 250m², but the VAT is refunded on the area of up to 130m² only. If you built/buy a residence of more than 250m² then no VAT is refunded at all, as you are judged to be not in the economic zone that needs the incentive.
There is no VAT on land acquisitions which is expected to apply after June 2008.
|
