There are several changes in the real estate industry this year that you should be aware of.
Sale of a new building and VAT
Previously, a building lost its new construction status immediately after its first use and no VAT was added when it was resold, but now the situation has changed. Starting in 2025, a building will be considered new for the entire first year of use. This means that if the building is sold within the first year after it is put into use, VAT will be added to the sales price.
Change in the deduction of housing loan interest
Starting in 2024, individuals will no longer be able to deduct mortgage interest from their taxable income. This means that interest cannot be deducted on the income tax return filed for 2024.