Who pays VAT when he sells a building in 2025?

You wonder how this change influences you? Well, the new rules are applied for all houses with a value of up to 600,000 she (excluding VAT). Furthermore, if the property does not meet all the conditions for the low altitude, you will pay a 19%standard.

In addition, the State also introduced a «register of purchases of low VAT accommodation», electronically managed, to monitor these transactions more carefully. However, there is good news: if you signed a sales contract in 2023 for a house of maximum 600,000 she and 120 sqm

In this article, we will explain exactly those who pay VAT when they sell the building in 2025, what are the applicable probabilities and how you can make sure you do everything according to the law. Let’s start!

Who pays VAT when he sells the building

In the field of real estate transactions, the understanding of the VAT mechanism is essential for all parties involved. Therefore, it is essential to clarify the specific roles and responsibilities of sellers and buyers.

The role of the seller in the VAT collection

The sellers, whether they are merchants or authorized natural people, have the main responsibility to collect VAT and turn to the state. However, not all people who sell properties are obliged to collect VAT.

For natural people, the obligation to collect VAT appears in the following situations:

• When you carry out at least two real estate transactions in one year and the properties have been purchased for sale, not for personal use
• When delivery a construction land or a new construction, after the intention of building for sale

In particular, individuals do not owe VAT for the properties used for personal purposes, such as:

• Personal Houses
• Holiday homes
• Inherited goods
• Properties acquired by reconstructing the property right

The obligations of the buyer on the tank

Although the sellers are responsible for the collection and transfer of VAT, the buyer is that which actually supports this tax of the total price paid for the purchase of the building. In order to benefit from the reduced VAT rate, buyers must meet certain specific conditions.

First of all, the buyer must be the natural person. In addition, it can buy a single house at a price between 450,000 and 700,000 she with a reduced VAT, having the opportunity to buy properties lower than 450,000 she.

A company can benefit from VAT by 0% for houses only if it opts for reverse taxation. If the buyer does not meet the conditions for the reduced share or for the reverse contract, he will have to pay the standard VAT rate of 19%.

For transparency and compliance, buyers are required to declare in the face of notaries who meet the conditions for the purchase with a reduced VAT. These declarations must be maintained by sellers as proof of the correct application of the reduced share.

VAT shares applicable in 2025

For the year 2025, the VAT system in the real estate field has different applicable levels, each with specific conditions of use.

Quotas reduced to 9% – Conditions and limits

The reduced rate of 9% is applied exclusively for the houses that simultaneously satisfy the following criteria:

• Maximum useful area of ​​120 square meters, without family attachments
• The total value, including the ground, does not exceed 600,000 she without VAT
• The purchase is made by individuals, individually or in common

In addition, in order to benefit from this reduced share, the house must be habitable at the time of childbirth, which means:

• Access to utilities (electricity, water, sewer)
• Complete and external internal and external finishes
• Functional health and electric installations

When the standard share of 19% is applied

The standard share of 19% becomes applicable in the following situations:

• Accommodation with value greater than 600,000 she (excluding VAT)
• Property with an area that can be used over 120 square meters
• Purchases made by legal entities
• Second purchase with low VAT for the same person

Cases of VAT exemption

According to the tax provisions, some real estate transactions are exempt from VAT. Therefore, the functioning of the delivery of an old building (after the expiry of 31 December of the year following the first employment) is free from VAT, without the right of deduction.

However, sellers can opt for the taxation of the transaction, in which case they must notify the competent tax authorities. This option is exercised by the date recorded in the notification.

For transactions between individuals involving old properties, VAT is not applied, but only transactions tax. In addition, in the case of transactions between legal people who meet certain conditions, it is possible to apply the reverse tax mechanism.

VAT calculation for different types of properties

The correct calculation of VAT for different types of properties requires a clear understanding of current tax rules. Therefore, let’s analyze in detail how to calculate for each type of property.

VAT for new apartments

For new apartments, the VAT value depends on several specific factors. Here are some concrete examples:

• A new 100 sqm apartment with a value of 500,000 benefits of her from a VAT reduced by 9%
• For an apartment of 130 sqm valued at 550,000 she, the standard VAT is applied by 19%, since the area exceeds the legal limit

In addition, the apartment must meet certain minimum conditions to be considered habitable:

• Complete external finishes, including roof and windows
• Functional health installations with mounted health workers
• Electrical panel and taken installed

VAT for houses and earth

In the case of houses, the calculation of VAT follows the same general principles, but with some particularities:

• A new 110 square meter house, evaluated at 590,000 she, descends to the VAT share of 9%
• For a 115 square meter house with a value of 625,000 she, the standard share of 19%is applied, since the price exceeds the maximum threshold

More than this, to benefit from the low altitude, the house must have:

• Individual access to the living space
• Utility connection (water, electricity)
• At least one space for rest, cuisine and the health group

In the case of the earth, the situation is different. For construction and new constructions, VAT is applied only after the intention of building for sale. However, the transactions between individuals involving old properties are exempt from VAT, applying only the transaction tax.

In order to regularize VAT in the event of paid advances, the seller must issue a reversal invoice and a new final invoice with updated VAT. The notary who authentic the contract will always check the correct VAT application.

How to correctly check the VAT before purchasing

The correct verification of VAT before purchasing a property represents a crucial step for any prudent buyer. Therefore, it is essential to know the necessary documents and the process of verification in the special register.

The necessary documents

For a complete VAT control, the following documents are essential:

• The Updated Urbanism Certificate
• Authorization of the valid building
• The reception relationship
• Land Book extract recently

In addition, the notary’s audience must verify and include in the documentation of the authentic act:

• Certificate generated by the application of the computer after consulting the register
• The buyer’s declaration regarding the fulfillment of the conditions for reducing the VAT rate

Check in the purchase register

Starting from 1 January 2024, public notaries have access to the «Register of housing contracts with a reduced VAT rate» in electronic format. This register is crucial to verify the admissibility for the low VAT rate and contains:

• Information on previous purchases of the buyer
• Properties data purchased with low VAT
• The value of the transactions made

To access the register, notaries use a qualified digital certificate. After each consultation or registration in the register, the system automatically generates a certificate that must be attached to the documentation of the authentic act.

In addition, notaries have the specific obligation to:

• Verify the fulfillment of the condition relating to the purchase of a single low VAT house
• Complete the register at the time of the authentication of documents
• Register the applied VAT rate in official documents and mention compliance with the legal conditions

For transparency and compliance, the notary must verify that the value of the house, including the ground, does not exceed 600,000 she (excluding VAT) and if the usable area is maximum 120 square meters, excluding family annexes.

Conclusion

The legislative changes concerning VAT in the real estate sector make significant changes for the year 2025. Therefore, both buyers and sellers must be well informed to avoid unpleasant surprises.

Of course, the key element remains the careful control of the conditions for the application of the VAT rate reduced by 9%. This involves compliance with the usable area of ​​120 square meters and the maximum value of 600,000 she without VAT. In addition, consulting the contract of contracts and the preparation of the complete documentation are the essential passages in the trading process.

For your safety, we advise you to consult a specialist before any real estate transaction. Therefore, you will be sure to benefit from the correct VAT rate and that all tax aspects are managed according to the legislation in force.

Whether you are a seller or buyer, knowing and respecting these rules helps you avoid tax complications and carry out real estate transactions in full legality