Ski-Inn Hiutale 36 & 66 prices and booking status.

What Does VAT Refund Mean, and Is It Worth It for Me?

The construction costs of the apartment include a 25.5% value-added tax (VAT), which can be reclaimed if the apartment is rented out 100% of the time. The VAT amount is significant: approximately €36,000 for a Hiutale36 apartment and around €55,000 for a Hiutale66 apartment. Most new Ski-Inn owners apply for the VAT refund because it is beneficial unless personal use of the apartment is extensive during peak seasons.

For newly built properties, the VAT refund is granted directly as a discount on the apartment’s purchase price. To receive the VAT refund, you only need to register as a VAT-liable entity, for which Ski-Inn Oy provides clear instructions. Additionally, you can reclaim the VAT on maintenance costs, which results in annual savings of approximately €700 for a Hiutale36 apartment and around €1,300 for a Hiutale66 apartment, further improving your return on investment.

If you apply for the VAT refund, you cannot use the apartment for personal use (Omakäyttö) or make spontaneous bookings. Instead, if you wish to use the apartment, you must pay the market rental price into the rental pool, from which part of your paid rent is returned to you as taxable rental income.

You can switch your apartment to personal use for a minimum of one year at a time. However, in that case, you will no longer be able to deduct the VAT on maintenance costs, and you must repay 10% of the VAT refund you initially received for each year of personal use. After 10 years of ownership, there is no need to repay the construction VAT. If you initially opt for a VAT refund, switching to personal use later is relatively easy. However, if you purchase the apartment for personal use from the start, applying for a VAT refund afterward is possible but quite challenging.

The less you use the apartment and the cheaper the periods of your stay, the more likely it is that applying for a VAT refund makes sense. For example, in a larger Hiutale apartment, the annual VAT benefit is approximately €5,500 (10% of the total refund) plus €1,300 from maintenance costs, totaling around €6,800 per year.

If you do not apply for the VAT refund and use the apartment personally, your rental income decreases by approximately one-third of the value of your stays, and you must pay a self-use fee covering linens and cleaning. Roughly estimated, applying for a VAT refund is worthwhile if your personal use of the apartment is valued at less than €10,000 per year.

Spontaneous bookings do not reduce your rental income but are not possible if you opt for the VAT refund. However, outside peak seasons, all Ski-Inn owners—including those who have received a VAT refund—can stay in any Ski-Inn apartment at a 25% discount.