Legal Advise5% vat or 19% vat on property?

VAT tax WHEN BUYING A PROPERTY – CYPRUS GUIDE

Since we have handled many Property cases, we have launched this VAT Guide as a helpful tool for Buyers. Of course it’s always recommended to receive legal advice when buying property in Cyprus and/or applying for the reduces VAT. Consult with a skilled Cyprus Lawyer to verify if you have to pay VAT on a property and/or if you are eligible to apply for reduced VAT or contact our lawyers at Alecos Orountiotis & Associates LLC for a case evaluation. 

New house or apartment	VAT                 19%	Companies and individuals When purchasing through a developer  a newly built property or if the property is sold for first time after construction
First and Primary Residence (house/apartment)	VAT            Reduced  5%	For  individuals only Use of property: As a primary/permanent residence  5% on the first €350.000 and only if the purchase price is up to €475,000.  For the first 130sq.m and  maximum area of property 190 sq.m.  Purchase from a Developer Restrictions if buyer wants to sell within 10 years of the purchase Companies do not qualify for the reduced VAT rate
For properties with planning permits granted until 31/10/ 2023	VAT                 Reduced   5%	Applies for the first 200sq.m Provided that the purchase will be finalized by 15/6/2026 Value of property is irrelevant Total sq.ms of property is irrelevant
For flats or houses  with planning permits granted before 01/05/2004	No  VAT	No VAT is paid Transfer Fees should be paid
Purchase through a Legal Entity	VAT           19%	VAT and Transfer fees should be paid
Resale of property	No  VAT	No VAT is paid  Transfer Fees should be paid

 

Our Lawyers can advise and help you. Just call us now +00357 25359247 or email us at alekoso@cytanet.com.cy.  

Disclaimer: This document provides information and guidance only and it is not a legal advice. We do not accept any liability that may arise out of the use or misuse of this information.