Croatia to subsidies apartment purchases for young couples

The construction ministry is preparing a bill, which will allow for subsidizing real estate purchases by young families (less than 45 years of age), to compensate for the abolition of tax benefits for first home purchases. Thus, the state is to subsidies the interest payments on mortgages (50%) in the first 4-5 years of repayment, similar to existing legislation few years ago (valid till 2012), according to the plan, which still has to be coordinated between different departments and pass public debate too. However, the subsidies would not apply only to new construction like in the past so as buyers from smaller settlements where new construction is scarce could benefit too. Moreover, there would be additional benefits for those families which get enlarged with new members after the purchasing of the property. There would be restrictions with respect to the maximum price of the apartment and the price per square meter. Construction minister Kuscevic hopes the bill to be advanced for approval by the end of the year and said that HRK 35mn are already budgeted for the initiative.

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