New Tax Refund for Young Buyers: Claim Your First-Home Refund in 2025!

New Tax Refund for Young Buyers: Claim Your First Property Refund in 2025!

What Does This New Tax Refund Mean for Young Buyers?

Starting in 2025, young buyers up to the age of 45 gain access to an important financial benefit: the right to a tax refund when purchasing their first residential property.

The refund applies in two cases:

purchase of an existing property → refund of the full 3% real estate transfer tax
purchase of a new-build from a legal entity → refund of part of the VAT

On the island of Krk, where demand for smaller and mid-sized apartments continues to grow, this measure offers an important opportunity for young people starting their first home together.

All amounts and rules mentioned in this blog are accurate at the time of writing but may be subject to future regulatory changes.

Who Is Eligible for the Tax Refund?

Basic Requirements

The buyer must be under 45 years of age
The property must be their first residential property
The purchase agreement must be signed after 1 January 2025
For houses under construction, the occupancy permit must be issued after 1 January 2025

Additional Conditions

The buyer or members of their immediate family must not own a property considered suitable for living
The buyer must register permanent residence at the new property and live there for at least five years
The price per square metre must not exceed more than 50% above the local average
The tax must be fully paid before submitting the application
The refund application must be submitted within 24 months of signing the purchase agreement
The buyer must not have previously received state housing subsidies

What Is Considered a “Suitable Property”?

A previously owned property is considered suitable if it has:

connection to water, electricity and sewage
at least 35 m² of usable area for one person
an additional 10 m² for each additional family member

Examples:

22 m² for one person → refund allowed
40 m² for one person → refund not allowed

If the buyer previously owned an unsuitable property, it must be sold within 24 months of purchasing the new one in order to maintain refund eligibility.

Maximum Property Size Allowed for the Refund

The property being purchased must not exceed the legally prescribed usable area. A tolerance of up to 50% above the limit is allowed.

Maximum sizes for apartments:

1 person → 50 m² (tolerated up to 75 m²)
2 persons → 65 m² (up to 97.5 m²)
3 persons → 80 m² (up to 120 m²)
4 persons → 90 m² (up to 135 m²)
5 persons → 100 m² (up to 150 m²)
6 persons → 110 m² (up to 165 m²)
7+ persons → 120 m² (up to 180 m²)

Maximum sizes for houses (50% more)

1 person → 75 m² (up to 112.5 m²)
2 persons → 97.5 m² (up to 146.25 m²)
3 persons → 120 m² (up to 180 m²)
4 persons → 135 m² (up to 202.5 m²)
5 persons → 150 m² (up to 225 m²)
6 persons → 165 m² (up to 247.5 m²)
7+ persons → 180 m² (up to 270 m²)

Example

Apartment of 115 m² for a 3-member household → refund allowed
Apartment of 130 m² for a 3-member household → refund not allowed

How Much Can Be Refunded?

For Existing Properties (Starogradnja)

The refund equals the full 3% real estate transfer tax.
Example: purchase price €200,000 → refund €6,000.

For New-Build Properties (Novogradnja)

VAT is 25% and is not refunded in full.
Only a fixed portion of VAT is refunded, depending on the household category.
Typical refund amounts range from €1,500 to €5,000.

How to Apply for the Refund?

Step-by-step

Pay the real estate transfer tax or VAT
Submit the application via e-Građani or directly to APN
Include the purchase agreement, proof of paid tax/VAT and personal documentation
After processing, the refund is paid directly to the buyer’s bank account

When to Expect Payment?

Refunds are not automatic
Applications are processed within official deadlines
The first applications will be accepted at the end of March 2025

Why Is This Important for Buyers on the Island of Krk?

Benefits for Young Buyers

lower initial costs
easier entry into homeownership
greater accessibility of first homes

Why It Matters Especially on Krk

heavy demand for smaller and mid-sized apartments
constant price increases
a valuable opportunity for young couples and families

As a team on the ground, we see every day how much this incentive can mean for young people planning their first home on the island.

Conclusion

The tax refund can be claimed only if the property and buyer meet all prescribed criteria. These rules are valid at the time of writing but may change. For young buyers — especially on Krk — this measure represents a rare chance to ease the financial burden of purchasing their first home.

Applications are submitted to APN using the official form. All documents, instructions and official explanations are available on the website of the Ministry of Physical Planning, Construction and State Assets.

This is the right moment for young people to take advantage of the incentive and take the first step toward their new home — and we are here to guide them through the entire process.