Bosnia and Herzegovina:VAT refund for the first residential property

VAT refund for the first residential property

The amendments to the Value Added Tax (VAT) Law were adopted by the House of Representatives on December 6, 2024, and subsequently approved by the House of Peoples, the upper chamber of the Parliament. The amendments have introduced a VAT refund for citizens purchasing or constructing their first residential property. This legislative change aims to ease the financial burden on first-time homebuyers and stimulate the housing market.

With this approval, the law is set to be enacted, pending the issuance of detailed regulations by the Indirect Taxation Authority to implement the refund process and prevent tax fraud.

This legislative move represents a significant step toward making homeownership more accessible in Bosnia and Herzegovina.

If you need further details or assistance regarding this policy, feel free to ask!

Key Provisions of the VAT Refund Law

Scope of Refund: The VAT refund applies to the purchase of new apartments or the construction of new houses, covering up to 40 square meters for the buyer, with an additional 15 square meters per household member.

Eligibility: Adult citizens with permanent residence in Bosnia and Herzegovina who are purchasing a new apartment or constructing a new house for the first time.

Exclusions: The refund does not apply to the purchase of existing (older) properties, as these are not subject to VAT.