20.04.2024
The Cyprus Parliament has passed a law allowing beneficiaries to claim a reduced VAT rate of 5% for a year after acquiring their main residence. The law was adopted at the proposal of the parliamentary group AKEL.
The proposal seeks to amend the Value Added Tax Act to provide the Commissioner of Taxes with the power to allow the filing of a responsible return by the beneficiary to take advantage of the reduced VAT rate of 5% for the purchase or construction of a residential property within twelve months of the beneficiary taking possession of the residential property premises.
Pasiourtidis pointed out in plenary , for various reasons that may be beyond their control, some beneficiaries submit their applications late, for example due to health reasons or because they are abroad. He said the proposal would allow those within 12 months to apply and benefit from the reduced rate.
Member of Parliament for DIKO Chrissys Pantelides called the bill very correct and said that they would definitely vote for it. He also noted that six months have passed since the adoption of the law on the 5% VAT rate, and the market has not suffered, as some feared, but continues to operate smoothly.
