Currently, one of the major challenges the real estate market is facing lies in the fact that the stock of old residential properties is not being replaced by a new one in a timely manner. Through a proposed amendment, which was adopted by the National Assembly on 15 December 2015, the Government aims to facilitate a change in this aspect. According to the new provision, the rate of VAT payable for new dwelling units is reduced from the prior 27 percent to 5 percent for the period 2016-2019. In addition, the bill contained a number of significant measures to cut related red tape and thus improve the sluggish performance of the construction sector. These measures are expected to lead in the aforementioned period to a sharp rise in the number of new residential properties.

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(Ministry for National Economy)