Once a new Cyprus property is purchased the purchasers can apply for a reduced Vat rate of 5% instead of the current rate of 19% under certain conditions and requirements:
The reduced VAT of 5% only applies to:
- Individuals, not Companies
- The Cyprus Property must be the applicant’s exclusive main Residence in Cyprus and must not be used for renting and/or making a profit. It must be used exclusively as the main permanent Residence in Cyprus for 10 years
- The applicant shall have no other property purchased in Cyprus previously at the reduced VAT rate
In the event the applicant sells the property before the expiration of the 10 years, they must return PRO-RATA the VAT reduced rate.
This article was prepared by G KOUZALIS LLC.