Parliament has passed a law, with 34 votes in favour and one against, granting beneficiaries to request a reduced 5% VAT rate within a year of acquiring a main residence.
Proposed by the AKEL parliamentary group, the bill aims to modify the Value Added Tax Law, enabling the Tax Commissioner to accept submissions from eligible individuals that will allow them to enjoy the reduced rate of 5% when buying or building a new home within twelve months of its acquisition.
AKEL MP Andreas Pasiourtidis clarified that some beneficiaries, due to various reasons like health issues or residing abroad, might submit their applications late. The new law will enable them a twelve-month timeframe to apply for and benefit from the reduced rate.
Diko MP Chrysis Pantelidis praised the legislation, expressing their support and observing that despite concerns, the market has continued to operate smoothly since the VAT rate adjustment six months ago.
Stavros Papadouris, MP for the Movement for Ecologists – Citizens’ Cooperation, welcomed AKEL’s amendment and endorsed it, recognizing that despite the law, there will always be unique cases requiring the Tax Commissioner’s sensitivity and flexibility for adjustments.
