According to the Value Added Tax Laws of 2000-2015 buyers of residential property could obtain a reduction to VAT and pay a reduced rate of 5%.

This was subject to certain conditions and only applied for the first 200 sqm covered area when the total covered area was not more than 275 sqm.

The Value Added Tax (Amendment) Law of 2016 took effect on the 18th of November 2016 and amended the Value Added Tax Laws of 2000-2015. Under the new provisions the reduced VAT rate will apply for the first 200sqm of covered area irrespective of the size of the overall covered area and there is no more a restriction to 275 sqm.