Smaller VAT on dwelling purchased under ‘First House’ program

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Those who plan to buy a dwelling under the „First House’ program will benefit by a smaller VAT, of only 5 percent.
This is one of the minimum conditions presented by PM Emil Boc on Thursday at a meeting with the bank representatives.
PM Boc, BNR Governor Mugur Isarescu and Finance Minister Gheorghe Pogea presented the banks the minimum conditions for the „First House” program.
The government announced Wednesday that the loans contracted for the purchase of the first home would be guaranteed by the state, within the maximum limit of 60,000 euro. The guarantee will be available for people buying their first home and who have not taken any mortgage loan before.
The downpayment requested from clients for ‘first house’ loans accounts for maximum 5 % of the loan’s total value and loan risk will fall on the state.
The Finance Ministry, the Central Bank, the Loan Guarantee National Fund and financial experts will set the technical conditions, so that the programs becomes operational this July.
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