Homebuyers in Cyprus land another win
The Cypriot Parliament has passed a law enabling beneficiaries to apply for a 5% reduced VAT rate within a year of acquiring a residence.
The bill, proposed by the AKEL parliamentary group, aims to amend the Value Added Tax Law, granting the tax commissioner the authority to allow formal declaration submissions by eligible individuals. This allows them to benefit from the 5% reduced VAT rate for purchasing or constructing a home within 12 months of acquisition.
AKEL MP Andreas Pasiourtidis explained that, due to various reasons, some beneficiaries can submit their applications late, such as health issues or residing abroad. The proposal aims to provide them a 12-month window to apply and benefit from the reduced rate.
DIKO MP Chrisis Pantelides praised the law, affirming his party’s support and noting that despite concerns, the market has continued to function smoothly since the VAT rate adjustment six months ago.
Ecologists’ Movement-Citizens’ Cooperation MP Stavros Papadouris said regardless of the law, there will always be unique cases requiring the tax commissioner’s sensitivity and flexibility for adjustments.
