Bosnia and Herzegovina introduces VAT refund for first‑time homebuyers

The Ministry of Indirect Taxation of Bosnia and Herzegovina published a new rule at the end of June, which amends the implementation regulations of the VAT Law. The amendment comes into force on 8 July 2026.

The refund applies to adult Bosnian citizens who permanently reside in the country and are purchasing, for the first time, a newly built residential unit bought directly from the investor. Eligible dwellings must be up to 40 square metres; the limit can be increased by 15 square metres for each additional member of the buyer’s household. The measure aims to ease the housing problem for young couples and families acquiring their first home.

Eligibility requires that the buyer has not owned, co‑owned, or jointly owned any residential property in the preceding seven years. The refund is intended to provide a significant saving on the value‑added tax paid at the time of purchase.