Romanians Buying Dwellings In „First Home” Program To Pay Reduced VAT, Of 5%

The government announced last week a program to guarantee the loans taken for the purchase of the first home, within the maximum limit of EUR60,000. The guarantee will be available for people buying their first home and who have not taken any mortgage loans before.

Romania’s Prime Minister Emil Boc, the Finance Minister Gheorghe Pogea and the central bank governor Mugur Isarescu discussed Thursday at the government headquarters with banks’ representatives interested to take part in the program.

During the meeting, the program’s objectives and the minimal requirements were presented, the government said in a press release.

“Those who buy a dwelling through the ‘First Home’ program will benefit of reduced value added tax VAT, of 5%,” the government statement said.

The Finance Ministry, the central bank, the SMEs Loan Guarantee Fund and banking experts will complete the technical conditions of applying the program so that it becomes operational in July.

Boc said Monday that he does not exclude the possibility to increase the loan’s ceiling from the current maximum EUR60,000.

The government extended Wednesday the National Fund Guaranteeing the Loans for the Small- and Medium-Sized Enterprises’ object of activity by an emergency ordinance, so that it may guarantee inclusively mortgage loans for the “First Home” project.