Tax expert warns of gaps in the application of the 6% VAT rate on housing

The 6% reduced VAT rate for construction and rehabilitation of homes intended for sale at moderate prices faces uncertainty because the tax status is only confirmed at the final deed. Developers risk penalties or back-tax demands because they cannot know until the final sale whether the buyer will use the property as a primary permanent residence, a condition required for the lower tax rate under the current legislation. The measure applies to projects initiated between 25 September 2025 and 31 December 2029, with tax eligibility starting from 1 January 2026.