You can already get the VAT reduction on new apartments promised by the Czech Government from us today
The Government’s consolidation package promises to reduce VAT on housing from 15% to 12% starting from 2024, but we are already adjusting our prices for the projects based on the conditions listed below. So, with us, you don’t have to wait any longer to buy a home. You can make a good deal today.
We have consistently strived to offer affordable housing and therefore welcome this Government’s step. Nevertheless, we don’t want our clients to have to wait in uncertainty for more favourable conditions.
Questions and Answers
What will be the change in VAT on housing?
Following the Government’s consolidation package, we expect VAT on new homes to be reduced from the current 15% to 12%, which is a reduction of three percentage points.
Does this mean a 3% reduction in the price of an apartment?
In the period prior to the approval of the amendment to the law on the reduction of VAT on new apartments, we are reducing the prices of apartments at our expense for all new buyers as if the amendment was already in force. If the Government fails to approve the VAT reduction package, we will not increase the prices retrospectively.
I am your existing client. Will this advantage apply to me?
Your future supplementary payments after the amendment is approved will reflect the lower VAT.
When will VAT on housing change?
At this time, it is unclear whether the Government package will be adopted and in what form. However, we assume that if approved, the change will not occur until January 1, 2024.
Will the possible reduction of VAT on housing affect the prices of the cooperative apartments on offer?
No, it will not directly affect the prices, as housing associations are not VAT payers by definition. The prices they offer to their cooperative members are final
So which projects are covered by the reduced price offer?
The offer applies to newly sold apartments (i.e. new contracts for apartments concluded after the launch of this campaign) within our three projects: Nad Krocínkou I, Britská čtvrt’ XV and Kralupy nad Vltavou – Rezidence U Vltavy I, i.e. the projects whose date of completion will be after the expected approval of the amendment to the Act on VAT related to housing.
Will you further reduce the prices of apartments after the reduced VAT becomes effective?
Our prices already take into account and reflect the proposed reduction of VAT on housing from the current 15% to 12%. Therefore, it is not possible to further reduce the prices. However, if the Government fails to approve the VAT reduction package, we will not retrospectively increase the prices to 15%. If the Government approves a package with a VAT on housing lower than the proposed 12%, the difference will be deducted from the purchase price balance due. If, the other way around, there will be an increase in the VAT rate on apartments, we will only increase your price accordingly, provided the new rate exceeds 15%. The increase will correspond to the difference between 15% and the new rate. However, given the communication from the Czech Government, a VAT rate increase is extremely unlikely at this time.