Currently, VAT Is Charged at 19% on the Purchase Price of the Property and Is Paid by the Buyer

However, if the applicant buys a house or apartment of up to 200 square metres,
VAT is charged at 5%. If the area of the house or apartment is up to 275 square
metres, VAT is charged at 5% on the first 200 square metres and at 19% on the
area exceeding 200 square metres, provided that:

• The applicant uses the property as their main residence for at least 10 years.
• The applicant does not rent the property.
• The applicant obtains approval for the 5% VAT rate from the VAT authorities.
  Once approved, the applicant is reimbursed for the VAT overpayment
  (the difference between 19% and 5%).

Example:
Purchase price of a 250m² house: €500,000

Calculation of VAT Payable

VAT is also charged on the purchase of land at 19% of the purchase price.