Cyprus Government lowering VAT to encourage EU buyers

THE HOUSE of Representatives of Cyprus has accepted many tax incentives in order to boost Cyprus economy and attract foreign investments to Cyprus. One of them concernes lessened VAT prices for the non-EU nationals, buying their very first property in Cyprus for personal use.

5 % VAT will apply to EU and non-EU residents, which will utilize this property as their primary house while in Cyprus (for any sort of time period). Lowered VAT will obtain properties purchased after the 8th of June 2012 and will not obtain properties purchased for pure investment applications.

Parliament even extended the period for reduced property transfer costs till December 31 of this year.

The program came into effect in end of 2011 and was expected to be in force just for a duration of 6 months. Government determined to extend the period for yet another 6 months. Under the scheme, if an individual gets a VAT-applicable property, he/she will certainly pay no transfer cost at all when the time pertains to move deeds on his/her name. For VAT-free properties transmit fee will be only 50 % of normal.