VAT Reduction on New Housing Acquisitions to Take Effect on January 1st
The reduction of Value-Added Tax (VAT) from 13% to 7% on new housing acquisitions will come into effect on January 1st, as stated in the 2025 Finance Law, according to Nejib Snoussi, Director General of Housing.
The real estate properties concerned by this reduction are those priced below 400,000 dinars and intended for residential use. This measure will enable new homeowners to save up to 20,000 dinars and revitalize a stagnant market due to excessive price hikes.
Furthermore, Mr. Snoussi announced that the ministry will soon announce a reform of Decree No. 161-2017 on first-time home ownership. As most new housing units are self-built (over 85%), their financing will now be eligible for first-time homebuyer assistance, similar to purchasing a property.
Another project being carried out by the Ministry of Housing is the rehabilitation or replacement of unsanitary housing. This program has already reached 7,244 housing units out of a total target of 10,000. Additionally, out of the 13,400 planned social housing units, 4,002 have been delivered, 4,370 are underway, and 5,000 will begin in 2025.
