The Government will reduce the VAT rate on the sale of completed apartments to 9% from 13.5%, from tonight until the end of December 2030.
Announcing Budget 2026, Minister for Finance Paschal Donohoe said this reduction will help address the “viability gap” in apartment construction.
He said it is part of a social policy to deliver more and higher density apartments.
In terms of cost rental housing, the Government is exempting the rental profits arising from homes that fall within the Cost Rental Scheme from corporation tax.
It is also introducing an enhanced corporation tax deduction for certain costs incurred on the construction of apartment developments, and for the conversion of non-residential buildings into apartments, to improve the viability of such developments.
It will be available for projects where a commencement notice is submitted on or after 8 October 2025, and on or before 31 December 2030.
Article Source – Govt to cut VAT rate on apartment sales from 13.5% to 9%