Cyprus Proposes Ending Reduced VAT for Foreign Homebuyers

• AKEL proposes a bill to remove the 5% reduced VAT rate for foreign nationals buying or building homes in Cyprus.
• The bill argues that the tax break has been misused, benefiting wealthy foreign buyers and contributing to rising housing prices.
• Removing the tax break would help control property prices, prevent housing shortages, and ensure public funds are used more effectively.
• AKEL believes that tax benefits should be directed towards those who truly need support, not foreign investors.
• The party criticizes past and current governments for applying the tax reduction too broadly, harming local buyers.
• AKEL emphasizes that VAT reductions should be part of the state’s social policy, helping lower and middle-income families.

Source: news.cyprus-property-buyers.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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