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VAT on Real Estates

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 19% 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 19%). 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%

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.