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ARTICLE · 14 AUGUST 2024

Recent VAT Changes In The Cyprus Legislation & Their Effect On Immovable Property Transactions: A Practical Viewpoint

AGPLAW | A.G. Paphitis & Co. LLC
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The House of Representatives passed the amending bill concerning applications for the reduced VAT rate of 5% on the construction or acquisition of brand-new properties to be used as primary ...

CyprusTax
AGP Law/ A.G. Paphitis & Co. LLC
AGP Law/ A.G. Paphitis & Co. LLC
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The House of Representatives passed the amending bill concerning applications for the reduced VAT rate of 5% on the construction or acquisition of brand-new properties to be used as primary and permanent residences in the Republic of Cyprus (the Republic).

According to the new provisions of the Value Added Tax Law of 2000 (the VAT Law), the reduced rate of VAT will apply to the first 130 square metres of the buildable residential area – based on the building factor and architectural plans presented to get a planning permit – where the Property value does not exceed the amount of €350.000, provided the total transaction does not exceed €475.000 and the total buildable area is no more than 190 square metres.

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