Investing in an apartment by the sea with VAT deduction

Introduction: Your investment in an apartment by the sea with VAT deduction

The key to optimizing profit when purchasing a property on the Baltic Sea is to consciously invest in a seaside apartment with VAT deduction. While most investors focus on location and price, experienced market players know that choosing a rental property opens the door to one of the greatest financial levers available at the outset: the possibility of recovering 23% of the property value in the form of VAT.

At first glance, the higher 23% VAT rate may seem like a burden. This is a common but misleading belief. In reality, this rate is the very condition that allows for a tax refund claim, transforming a perceived cost into a potential financial benefit.

Many investors, however, forgo this option because they perceive the process as complicated and reserved exclusively for experts. Fear of formalities means significant capital may remain unused. Instead of focusing on potential difficulties, it's worth viewing this process as a structured path to significant financial optimization. The key isn't to avoid the process, but to understand it and navigate it with awareness of all its stages.

This is why the need for clarity and certainty in action leads us to seek reliable information that simplifies what may seem complicated. This article aims to provide insight and explain key aspects of this process. It will demonstrate why investing in a seaside apartment with VAT deduction is an attractive financial option and how, with proper preparation, it becomes a structured and transparent process aimed at optimizing investment capital.

Why is an apartment with 23% VAT a financial game-changer?

The VAT deduction mechanism, while ostensibly complex, is based on a simple principle. The key is that purchasing an apartment for rental purposes—that is, providing accommodation services—is a taxable transaction. Unlike purchasing a property for residential purposes (with a lower VAT rate of 8%, which cannot be deducted), the higher VAT rate of 23% provides a strategic advantage for the investor.

The right to deduct as the key to profit

This is because if an investor (even an individual not running a business) registers as an "active VAT payer" and uses the apartment for taxable activities—i.e., short-term rentals—the law allows them to claim a refund of the VAT paid (23%). The condition that opens this possibility is that the property is used to provide services that are themselves subject to VAT.

In the context of an investment apartment by the sea, this means:

• Qualifying activity: Short-term rentals for tourist purposes are subject to VAT at the 8% rate, which fully entitles you to deduct the 23% VAT on the purchase.
• Exclusionary activity: Long-term rental for residential purposes (statutorily exempt from VAT) or use of the apartment exclusively for own needs.

Impact on return on investment (ROI)

To fully appreciate the power of this benefit, it's enough to understand that the actual cost of acquiring a property can be as high as its net price. This means that the recovered VAT, which represents a significant portion of the property's value, flows directly back to the investor.

This financial transaction can radically change key profitability indicators. First, it can significantly lower the entry threshold, freeing up capital. Second, it can shorten the return on investment (ROI), as VAT deduction allows for a much faster capital recovery. As a result, the recovered amount becomes liquid capital that can be allocated to finishing a premium apartment, reinvested, or used to repay the loan more quickly.

Pitfalls and mistakes: How to protect your investment in an apartment by the sea?

Understanding potential challenges is just as important as knowing the process itself. Below are four aspects to pay particular attention to. Think of this as a roadmap of key points that will help you manage the process thoughtfully.

• Error 1: Incorrect VAT Registration Timing. Many investors mistakenly assume they can register for VAT after making their first deposit. This is a fundamental mistake, as the law requires active VAT registration. before receiving the first invoice.
• Mistake 2: Improper Designation of Premises and 10-Year Correction Mechanism. The investor successfully deducts VAT, but after three years decides to rent the premises for residential purposes. At this point, the statutory 10-year VAT correction mechanism kicks in, requiring a refund of a portion of the deducted tax.
• Error 3: Documentation Deficiencies. The basis for deduction is a properly issued invoice. Working with an inexperienced developer may carry the risk of receiving documents with errors, which may make reimbursement difficult or impossible.
• Mistake 4: Ignoring Seller and Transaction Status. It's a mistake to assume that every transaction on the primary market is automatically subject to VAT. If the transaction is legally exempt and the developer nevertheless charges VAT, the buyer has no right to deduct it.

A conscious understanding of these issues is crucial, as it demonstrates that the process, while cost-effective, requires precision. Choosing a developer who understands these mechanisms is therefore an important element in securing capital.

VAT deduction procedure with Zielona Marina – your safe process

We present a precise roadmap that we use to support our investors throughout the process and strive to maximize benefits.

• Step 1: Registration as an Active VAT Payer.
  • Action: Submitting the VAT-R form. Importantly, this registration does not require starting a business. However, it should be remembered that the status of an active VAT payer is associated with administrative obligations, such as regular submission of JPK_V7 declarations and maintaining VAT records.
  • Green Marina Support: We provide a template form and help ensure that registration occurs at the right time – before signing the contract.
• Step 2: Signing the Agreement and Receiving Invoices.
  • Action: Finalizing the contract and receiving invoices.
  • Green Marina Support: We ensure that every invoice we issue is prepared in accordance with the applicable VAT Act requirements, which is a fundamental element in the tax refund application process. Please note that the final decision regarding the right to deduct rests with the relevant tax authority.
• Step 3: Submitting the JPK_V7 Declaration.
  • Action: After receiving the invoice, you must submit the Standard Audit File (JPK_V7).
  • Green Marina Support: We collaborate with reputable tax firms. Upon request, we can connect you with an external partner who specializes in preparing and submitting JPK_V7. The choice of advisor and the collaboration with them remain the investor's decision.
• Step 4: Waiting for Refund.
  • Action: Waiting for transfer from the tax office.
  • Green Marina Support: Statutory repayment deadlines are 60 or 180 days. For new investors, the most common deadline in practice is 180 daysWe provide clear information about this so that you can precisely plan your financial liquidity.

Case Study: Your investment in an apartment by the sea in Zielona Marina

VAT deduction is a powerful "financial booster", but its real power is revealed when it powers the "high-performance engine" that is investment in Zielona MarinaIt is the synergy of an intelligent financial structure with the unique characteristics of real estate that creates an investment model with high income potential.

The recovered capital can be put to work immediately. For example, it can be used for premium finishes, loan overpayments, or portfolio diversification. But the real magic happens when we combine this benefit with unique advantages. our apartments:

• VAT + Private SPA: VAT deduction is available based on the rental model. Our private SPA & Fitness area acts as a magnet for premium customers, supporting high occupancy rates—and therefore VAT-taxable revenues—year-round.
• VAT + RES and Smart Home: Recovered VAT provides a cash injection at the start. At the same time, thanks to photovoltaic panels, the monthly administrative fee is dramatically lower. This is a double benefit: more capital at the start and a potentially higher net profit.

Zielona Marina isn't just a building. It's a carefully considered investment model, with everything working together towards a single goal: generating maximum passive income for the owner.

FAQ: Investing in an apartment by the sea with VAT deduction

• How much does an apartment actually cost after deducting VAT? Your actual purchase price is the net price. After VAT is refunded, your final cost is significantly lower than the gross price.
• Why is the rental apartment subject to VAT at 23% and not 8%? Legal status is key. Apartments in Zielona Marina are designed for rental purposes. According to VAT regulations, such units are subject to VAT at 23%. Paradoxically, the higher rate is the benefit, as only it entitles the taxpayer to a full deduction.
• Do I need to set up a company to deduct VAT? No. To deduct VAT, simply register as an "active VAT payer" as an individual. The Zielona Marina team will guide you through this process step by step.
• Doesn't a higher property tax offset the gain? Indeed, the annual tax rate for non-residential premises is higher. However, the one-time VAT refund is a benefit that far outweighs the annual tax difference.
• How long does it take to receive a VAT refund? Statutory deadlines are 60 or 180 days. For new investors, the 180-day deadline is most common, so it's safest to plan your liquidity based on this period.
• Does every developer help with VAT deductions? Definitely not. At Zielona Marina, we treat investing in a seaside apartment with VAT deductions as an integral part of the process. Our active support is what sets us apart.

Legal Notice (Disclaimer): This article is for informational purposes only and does not constitute legal, tax, or investment advice. The information contained herein is based on the law as of the date of publication and is subject to change. Every investment and tax situation is unique. Before making any financial decisions, particularly those related to VAT registration and tax refund claims, the reader should consult an independent, licensed tax or legal advisor. Zielona Marina is not responsible for any decisions made based on the information contained in this article.

Conclusion: Act smart. Take advantage of available opportunities.

Investing in a premium apartment is, above all, a financial decision. Therefore, a conscious investment in a seaside apartment with VAT deduction isn't a higher cost—it's a strategic decision that unlocks the potential for a substantial capital gain right from the start. Don't leave this money on the table.

Stop overpaying. Start investing intelligently with a partner who cares about your capital as much as you do.

Contact usand. We'll show you how VAT deduction will maximize the profit from your apartment.