The Cyprus Tax Department informs that, by decision of the Council of Ministers (12/01/2022), there is now the possibility of requesting a 14% VAT refund on land purchased by a parent or guardian and transferred to an adult child, for the construction of a residence subject to a reduced VAT rate of 5%.
This amendment applies immediately and the necessary conditions are:
- The Plan applies to plots defined in the Eighth Annex of the Law on Value Added Tax
- The property (bought) must be subject to VAT.
- The house that will be built must be used as a primary residence and be subject to a reduced VAT rate of 5%.
For more information (including text in Greek), please contact P. Constantinou & Co. Ltd
Source: pconstantinou.com
