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The expiry of the reduced VAT of 5% for the first residence has shot up the рlanning permit

The expiry of the reduced VAT of 5% for the first residence has shot up the рlanning permit


A total of 2,595 applications for planning permit were submitted in October following the end of the 5% VAT relief for first homes.

According to the Ministry of Internal Affairs, due to the adoption of the Value Added Tax Law on June 16, 2023, in the period June-October 2023, the number of applications received by city planning authorities was approximately twice as high as in the corresponding period last year .

In particular, during the period under review, a total of 6,333 applications were submitted, of which 2,595 were submitted in October, when the provision for a 5% VAT reduction for the first place of residence ended. Accordingly, for the period June-October 2022, the number of applications submitted was 3,406. Given the large number of applications submitted in October, there may be delays in processing them.

At the direction of Minister Konstantinos Ioannou, a plan of 22 measures was drawn up with an implementation deadline in the first half of 2024, aimed at modernizing and simplifying the development licensing procedure and limiting the delays observed during the examination of applications.

In addition, with the transfer of licensing to the new Regional Self-Governing Organizations (OSGs) effective July 1, 2024, the Ministry of Internal Affairs has begun recruiting 105 people who will staff the existing authorities and subsequently the EOAs at this stage to ensure a smooth transition to the new system.

Source and photo:, Editor

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