The Cyprus Tax Department recently released Circular 229 clarifying the VAT treatment of long–term leases of immovable property. As from 1 January 2019, a long-term lease of immovable property which effectively transfers the right to dispose of the property as owner to the lessee constitutes a supply of goods subject to VAT. The factual circumstances of the lease will determine the VAT implications including VAT treatment and time of supply.
Source: EY
