From May 27, 2024, filing for the reduced VAT will be carried out only electronically.

To apply for the reduced 5% VAT on the purchase of real estate, you will need to go to the Tax For All (TFA) portal.

What does the new algorithm of actions look like?

Please see the explanations published at the link

In particular, you need to set up an account on the TFA portal.

If you are using the portal for the first time, you must send a request for registration in the Tax Register.

Basic conditions for receiving reduced 5% VAT

From November 1, 2023, the rules for calculating this tax when purchasing new real estate has changed. Now a 5% rate applies to the entire area if the property area is less than 130 m2 and the cost of the property does not exceed 350,000 euros.

If the area of the object is less than 190 m2 and its price does not exceed 475,000 euros, then 5% VAT applies to the first 130 m2, and 19% VAT is applied for the remaining (190-131 m2). If the area of the property is more than 190 m2, and the cost is higher than 475,000 euros, the sale will be at the full VAT rate of 19%.