- Circular 2/2025 issued by Cyprus’ Commissioner of Taxation on 24 March 2025
- Provides guidelines for rental property owners on VAT exemption option
- Valid until 31 December 2025
- VAT applies to non-residential property leases to taxable persons
- Owners can opt out of charging VAT under certain conditions
- Must notify the Commissioner by submitting form TD1220 within 30 days of lease signing
- Circular allows notification by 31 December 2025 for those who haven’t previously opted out
- Conditions include not having submitted form TD1220 before and compliance with tax obligations
- Excludes leases where VAT was previously charged to taxable persons with input VAT deduction rights
- From 1 January 2026, notification must be within 30 days of lease signing
- Extensions for late submissions may be granted by the Commissioner
Source: taxathand.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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