The change in VAT: what does it mean for you?

For a main residence


If you are intending to construct a new property in 2015, for which you intend it to become your main residence you will still be able to benefit from the ultra-low TVA rate of 3%. However since VAT rates are increasing in general from 15-17% in real terms the amount of capital that can benefit from the ultra-low rate will be reduced from EUR 416,000 to EUR 359,000
 
If you are interested in constructing a property with the intent of renting it the VAT rate is increasing to 17% from the 1 January 2015

For a rental investment, the ultra-reduce rate of 3% will simply be removed until January 1st, 2015. The VAT rate will then be 17%, meaning costs will increase by 14%. If you have already stared your construction by 31 December 2014 you will not be affected by this change.