Tax refund for first property: First payments have already begun!

In early June 2025, the Agency for Legal Transactions and Real Estate Mediation (APN) began accepting applications for tax refunds on the first property. The measure has generated great interest among young families and individuals who want to solve their housing issues, as it allows them to recover part of the costs incurred during the purchase. More than 1,300 requests have been received so far, and the first solutions and subsidy payments have already started.

How many requests have been processed and approved?

To date, a total of 1,323 requests have been received, of which 816 have been processed, or 62%. Of these, 585 requests were approved, while 88 were rejected, dismissed or the procedure was suspended because the applicants withdrew from the process. These data show that most citizens still meet the conditions prescribed by law, but the number of rejected requests is not negligible and raises the question of the citizens' information before submitting the documentation.

Why are some requests rejected?

The reasons for rejection are most often related to a property that exceeds the permitted size or price by more than 50%, then to the buyer's age, which exceeds the legal limit of 45 years, but also to the possession of other properties. Some requests were also rejected due to multiple applications from members of the same family. All this shows that the measure is clearly aimed at young people without a previously solved housing issue.

How much are the subsidies and what do they mean for citizens?

The average amount of support per family is about 8,500 euros, which represents significant financial assistance for many at the start. When it comes to VAT refund for new construction, the amounts are even higher - on average about 14,500 euros. On the other hand, the refund of paid real estate transfer tax (PPN) averages 3,515 euros. Although the numbers vary depending on the type of purchase, each of them alleviates the pressure on the household budget and reduces the initial investment when buying the first property.


In which cities is the interest the greatest?

The largest number of requests was submitted in Zagreb, which is expected given the concentration of population and apartment prices. However, approvals are also significant in other cities such as Split, Rijeka, Velika Gorica, Osijek, Zaprešić, Slavonski Brod, Zadar, Karlovac and Šibenik. This confirms that the measure is recognized throughout the country, and not just in the capital.

What does the procedure look like and when does the money arrive?

Citizens submit a request for a tax refund to APN on a prescribed form with the appropriate documentation. After processing the request, the solutions are sent by mail, and the payments are carried out by the Ministry of Physical Planning, Construction and State Property. What is especially important – the subsidies are paid in a one-time manner, which allows buyers to immediately dispose of the approved funds and cover part of the costs.

Who is entitled to a tax and VAT refund?

The measure is intended for citizens under the age of 45 who are buying their first residential property for their own needs. It does not imply a loan, but represents a non-refundable subsidy by which the state wants to facilitate the resolution of housing issues for young people. At the same time, it also encourages traffic on the real estate market, and especially interest in new construction. Read more about the conditions for obtaining subsidies on our blog Tax refund on the first property.