Investing in Cypriot property has always been an attractive option, especially for clients of “Sunny Bay” real estate agency. Significant changes in the VAT taxation system effective from November 1, 2023, are crucial considerations for anyone purchasing their first property on the island. This guide aims to help you understand how these changes might impact your investment.
Main Section (H2):
An Introduction to the New VAT System in Cyprus
The head of the Tax Department of the Republic of Cyprus, Sotiris Markidis, has outlined the key aspects of the new VAT system. The main points include:
- Properties up to 130 sq.m. priced up to 350,000 euros will be taxed at 5%.
- Properties up to 190 sq.m. costing up to 350,000 euros: 5% VAT is applicable for the first 130 sq.m, while the remaining area is taxed at 19%.
- Details for larger and more expensive properties: Explaining VAT rates for properties over 190 sq.m and priced above 475,000 euros.
VAT Calculation Examples for Property Purchases
Content: For a clearer understanding, let’s examine a few examples of VAT calculations:
- A calculation example for apartments measuring 100 sq.m priced at 350,000 euros.
- Detailed VAT calculations for properties measuring 150 sq.m priced at 350,000 euros, and so on.
Exemptions and Benefits for First Home Purchases in Cyprus
Cypriot legislation offers benefits for large families and individuals with disabilities. This section will help you understand how you can benefit from these concessions when purchasing your first home in Cyprus.
Understanding these VAT changes when buying property in Cyprus is critical for effective investment. “Sunny Bay” is always ready to provide you with the latest information and assist you in finding the perfect home in Cyprus.
