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Buying your first property: How many square meters can you buy and get a tax refund?

/ Regent Zagreb
Buying your first property: How many square meters can you buy and get a tax refund?

In the past few blogs, we've written about the conditions for obtaining the right to a tax refund for the purchase of a first property, but in this blog, we will take a more detailed look at the prescribed apartment areas according to the number of family members for whom it is possible to obtain the right to a tax refund.

What to pay attention to when choosing a property



When choosing an apartment or house for the purchase of a first property, it is important to plan the square footage and price in order to fully utilize the support. It is recommended to:

  1. check the maximum area allowed for your number of household members,
  2. compare the price per square meter with the average local property price,
  3. use the available APN calculator to calculate the amount of support,
  4. ensure that you have not previously used state support for the acquisition of a first property.



All these steps ensure that the tax refund on the purchase of a first property is maximized and that the financial burden is as small as possible.

How is support for the purchase of a first property calculated?



The calculation of support is based on the prescribed sizes of apartments and houses and their prices per square meter. The size of the property for which you can claim a tax refund is calculated according to the number of household members.


For apartments:


1 person: up to 50 m² (tolerance up to 75 m²)
2 people: up to 65 m² (tolerance up to 97.5 m²)
3 people: up to 80 m² (tolerance up to 120 m²)
4 people: up to 90 m² (tolerance up to 135 m²)
5 people: up to 100 m² (tolerance up to 150 m²)
6 people: up to 110 m² (tolerance up to 165 m²)
7+ people: up to 120 m² (tolerance up to 180 m²)


For family houses:


1 person: up to 75 m² (tolerance up to 112.5 m²)
2 people: up to 97.5 m² (tolerance up to 146.25 m²)
3 people: up to 120 m² (tolerance up to 180 m²)
4 people: up to 135 m² (tolerance up to 202.5 m²)
5 people: up to 150 m² (tolerance up to 225 m²)
6 people: up to 165 m² (tolerance up to 247.5 m²)
7+ people: up to 180 m² (tolerance up to 270 m²)


If you buy a property larger than the prescribed maximum square footage for obtaining incentives and if you meet the remaining conditions, you will still be able to get a tax refund, but on the condition that the property is not 50% larger than the one provided by law according to the number of family members, but you will get a refund according to the square footage prescribed by law.


Also, if the actual area of the property you are buying is smaller than the prescribed one, the support is calculated according to that actual size. For example, if you are entitled as a single person to an area of 50 m², and you are buying a 35 m² apartment, the amount of support will be recalculated according to the actual 35 m².

Relationship between the area and the price of the property



In addition to the area itself, the price of the property is also taken into account in the calculation of the support. A refund of VAT or property transfer tax can only be obtained if the price per square meter of the property does not exceed 50% of the average local price per square meter. This means that even if the property technically meets the prescribed size, a very high price per m² can limit the amount of support.
This incentive model is designed to allow young people and families to buy an adequate property at a real market price, without excessive financial burden. If you want to check the average prices per m² in your local unit, we recommend that you use the APN calculator.

Why it is important to plan the purchase of the first property



Planning the square footage and price of an apartment or house is key to maximizing the use of state support. It is advisable to calculate in advance the amount of the tax refund you can get and choose a property that will meet your needs and at the same time meet the legal requirements.
In this way, buying a first property becomes easier, more financially acceptable and safer, and the state helps young people and families to solve the housing issue without unnecessary stress.

Tax refund – real amounts and examples



Based on previous data, the average amount of support for a VAT refund is around 14,632 euros, while the property transfer tax (PPN) refund is around 3,516 euros. These amounts vary depending on the area and price of the property, but they give a clear picture of how much the state helps young people and families in solving the housing issue.


Example:


A single person who buys a 45 m² apartment with a price per square meter within the permitted limits can expect support calculated according to the actual square footage of the apartment.
A family of four that buys a 100 m² apartment can get a VAT refund up to the maximum prescribed area of 90 m² (tolerance up to 135 m²).


Why use incentives for the purchase of the first property



These incentives make the purchase of a first property more accessible, especially for young people and families who are still building their housing solution. Tax and VAT refunds significantly reduce the cost of purchase, and proper planning of the property and documentation can ensure maximum benefit from state support. If you want more detailed information on submitting an application and the conditions, visit the official website of the Ministry of Physical Planning, Construction and State Property.


In three months, 1830 applications were received, and 830 were processed. About seven million euros were paid for those 830. The average age of citizens submitting applications is 32 years, the average size of the apartment is 66 square meters, and the average household has two members.

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Regent Zagreb
Regent Zagreb

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