Partial VAT Reimbursement Regime for Construction of Own Permanent Housing
The 'New Housing Package,' published on May 20, 2026, introduces tax relief measures to boost housing supply, including a new 'Partial VAT Reimbursement Regime' for individuals constructing their own permanent homes, alongside provisions exempting capital gains tax on residential sales when reinvested in moderately rented properties.
Following the Council of Ministers' announcement on September 25, 2025, the 'New Housing Package' was officially published on May 20, 2026, aiming to stimulate housing supply through fiscal incentives. A key component is the 'Partial VAT Reimbursement Regime' for individuals constructing their own permanent residences, alongside revised Article 2.42 of the VAT Code (CIVA) and the exclusion of IRS taxation on capital gains from residential sales when proceeds are reinvested in moderately rented properties. This measure addresses longstanding gaps in housing incentives and aligns with national goals for affordable housing development.