Bosnia and Herzegovina launches VAT refund for first home purchases

On 8 July 2024 the Ministry of Finance of Bosnia and Herzegovina began accepting applications for a value‑added‑tax (VAT) refund on the purchase of a first residential property. The refund applies only to new‑construction apartments or houses for which VAT was paid, and the property must be registered in the buyer’s name after 12 April 2025. Applicants must not have owned any real estate in the previous seven years and must provide a set of 13 documents, including the purchase contract, land‑registry extract, proof of full payment and personal identification papers.

Requests are submitted to the regional centres of the Independent Tax Administration (UIO) in Banja Luka, Sarajevo, Tuzla and Mostar, and must be filed by the end of the year. The amount refunded is calculated on the basis of the paid price per square metre, with a basic entitlement of up to 40 m² plus an additional 15 m² for each household member who also does not own property. There is no statutory ceiling on the refund; estimates suggest a maximum of about 25 000 KM depending on size and average price per metre. Payments are made within six months of a complete application. The scheme does not cover self‑built houses, inherited dwellings, or properties still under construction. Officials Milica Vidović and Director Zoran Tegeltija emphasized that funding is sufficient and urged eligible citizens to submit orderly applications promptly.