State Losses Due to Reduced VAT on Villas
June 20, 2025
The state has lost 130 million euros due to the implementation of a reduced VAT of 5% on villas worth over 500,000 euros. Despite stricter regulations approved in 2023, transitional provisions allow some to benefit from lower taxes until 2026. This situation has resulted in a surge of applications for building permits, as interested parties rush to acquire properties before the period expires. The Ministry of Finance estimates that these reductions have significantly impacted state revenue.