Legal Framework
Law 132(I)/2023, in force since 16/6/2023, regulates the reduced 5% VAT on the first residence.
Key Criteria
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5% VAT applies to the first 130m² of the residence with a value up to €350,000.
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Total area must not exceed 190m² (or the entire area at 5% for persons with disabilities).
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The residence must be used as the main and permanent home for at least 10 years.
Calculation Example
Residence 135 m², value €360,000:
— 5% VAT on 130 m² = €18,200
— 19% VAT on the additional 5 m² = €3,420
Total VAT €21,620 instead of €68,400 (savings €46,780).
Planning to buy your first residence? Localit Consulting handles building permit checks, submission of reduced VAT application, and full guidance until delivery.
