- Cyprus will change its VAT rules from 1 September 2026, with new criteria for when a building is considered “new.”
- The old five-year completion rule is replaced by “before first occupation,” and “first use” is defined as systematic use for at least 18 months.
- Any sale of a building and land before 18 months of systematic use will generally be subject to VAT.
- Similar changes affect the 5% reduced VAT rate, including for renovations and certain building sales, if other conditions are met.
- Developers, vendors, buyers, and investors should keep records of first use/occupation to determine VAT treatment and avoid unexpected liabilities.
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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