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Thursday 9th July 2020
Home News VAT delay on Cyprus land

VAT delay on Cyprus land

Cyprus’ Minister of Finance, Charilaos Stavrakis, says the Government is confident that it will be able to secure a postponement of the introduction of VAT on building plots.

Under its commitments to the EU, Cyprus was to have levied a 15 percent VAT charge on the sale of building plots on January 1 2008. However, negotiations last year succeeded in delaying its implementation until the August 1 2008.

The prospect of the introduction of VAT increased the number of properties bought and sold during 2007. As a result, many buyers paid higher prices to beat the VAT deadline.

According to the Finance Minister, “the imposition of VAT affects a small part of the total land sales, since it concerns plots sold by real estate agents registered in the VAT register, while the land sold from individual to individual via a real estate agent is not subjected to VAT”.

In the meantime, the Finance Ministry is investigating a method by which transfer duties (Property Transfer Fees) may be abolished by returning the monies paid by way of a special benefit; details have yet to be announced.

(See earlier story ‘Cyprus bank eases loan restrictions‘)

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