HomeNews MenuLatest News & UpdatesVAT on building plots from January 2009

VAT on building plots from January 2009

We have just learnt that the EU does not intend to grant Cyprus a further postponement regarding the introduction of VAT on land sales. As a consequence, the purchase of plots will be subject to 15% VAT from 1st January 2009.

The news comes as a blow to the economy and the Cyprus property market, which has already been reported as being in a crisis.

Lakis Tofarides, the Chairman of the Pancyprian Land Developers Association, is reported as saying that the increase in the cost of land is the main reason for the huge increase in the cost for the first-time buyer and that the imposition of 15% VAT on properties will push the costs up even further.

The Cyprus Government has already introduced a housing grant in the form of a VAT refund scheme to help lower income first-time home buyers.

We will publish more information as the details emerge.

RELATED ARTICLES

Essential Due Diligence

While buying property in Cyprus holds many opportunities, it also comes with risks. Carrying out due diligence before signing a sale agreement is essential to safeguard your investment, avoid legal complications, and ensure peace of mind.

Top Stories

Property Transfer Fees

Transfer fees are charged by the Department of Lands and Surveys (DLS) when the full legal ownership of a property is transferred to the purchaser. (In some cases this process can take many years, causing angst & frustration for buyers.)

EUR - Euro Member Countries
GBP
1.1676
RUB
0.0103
CNY
0.1292
CHF
1.0580

Capital Gains Tax

Capital Gains Tax (CGT) is generally 20% on the taxable gain from selling immovable property - and it can also apply to certain disposals of shares in companies holding real estate on the island, subject to applicable exemptions and deductions.

Elsewhere in Cyprus Property News