Cyprus Property News magazine for overseas buyers & real estate investors

Saturday, June 6, 2020
Home News VAT reduction for first-time home buyers agreed

VAT reduction for first-time home buyers agreed

FOLLOWING a series of proposals, counter proposals, discussions and debates, a compromise deal has been reached on the VAT reduction for first-time home buyers.

With 33 MP voting in favour and 18 against, the bill reduces the VAT payable on new homes measuring up to 275 square metres to 5%.

In addition to the 275m2 for the dwelling, there are additional allowances of:

  • Up to 36m2 for covered parking
  • Up to 5m2 for an engine/boiler room
  • Up to 7m2 for storerooms
  • Up to 40m2 for covered verandas

If the government accepts the bill, the changes will come into effect on 1st October.

Agreement on the compromise bill was reached yesterday following an urgent meeting between the Cyprus Finance Minister, Kikis Kazamias, and the House Finance Committee.

It is hoped that the reduction in VAT will help boost the Island’s residential property market and help young families to get a foot on the housing ladder.

LOCAL WEATHER

Cyprus
clear sky
28.2 ° C
31 °
26.7 °
42 %
3.1kmh
0 %
Sat
29 °
Sun
31 °
Mon
29 °
Tue
29 °
Wed
31 °

EXCHANGE RATES

EUR - Euro Member Countries
GBP
1.1217
RUB
0.0129
CNY
0.1251
CHF
0.9203

MOST POPULAR

Paralimni Marina set to launch this summer

Global real estate advisor Savills has been appointed as the master selling agent for Paralimni Marina, the new waterfront destination set to transform Cyprus.