Cyprus-Forum.com

[cosmic]

Thank you Nigel, I found your website very informative

[The Microphone]

I dunno about anyone else.......... but I will never buy a house and have to pay VAT on it. In a market place that must be reaching saturation point, to further inflate the market by 15% seems utterly ridiculous.

I'll stay renting thanks.

[G.Man]

Microphone

If you are a Cypriot or EU citizen, and its to be your main residence, you can get a VAT refund I believe...

[Svetlana]

VAT refunds exist in theory but.. it must be your 'first property' and residence, they apply to only a proportion of the VAT and on properties up to a certain size, plus dealing with the beaurocracy...

FRom the Financial Mirror:

The original legislation that gave a refund on houses up to 200 sq. metres is now set to expand to 298 sq. metres, which will include the covered areas, parking, boiler room and storage areas.

According to the new proposal, persons eligible to apply for the grant are those whose building applications were made after May 1, 2004, who are over 18 years old, permanent residents of Cyprus and who don’t own other property.

In order to qualify, those who receive the grant should hold the property for at least ten years, otherwise they will have to return the grant. The bill provides for up to 250 sq. metre covered area, plus 36 sq.m. for parking space, 5 sq.m for boiler room and 7 sq.m. for store rooms. The grant is calculated on 130 sq.m. basic area, but for every family with more than three children, there is an additional provision of 15 sq.m.

The amount of the grant will depend on the type of the property purchased and its size, based on the 130 sq.m. calculation. The amounts are as follows:

1- CYP 500 per sq.m. for buildings under construction.

2- CYP 950 per sq.m for purchase of one bedroom flat.

3- CYP 950 per sq.m for purchase of two bedroom flat.

4- CYP 875 per sq.m for purchase of three bedroom flat.

5- CYP 750 per sq.m. for purchase of semi-detached house.

6- CYP 1000 per sq.m. for independent house.

The refund is calculated by taking the area of the house/flat, multiplied by the purchase price per sq.m, multiplied by VAT rate of 15/115 and multiplied by the 10/15 refund rate.
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Lana

[nhowarth]

Back to the original question - VAT on land sales is being introduced in 2008 I believe.

Also heard a rumour that Property Transfer Fees are under review - anyone else heard anything?

Cheers,

[Svetlana]

Nigel

What is the rumour? Upwards, downwards, rationalisation or disappearance?

Lana

[nhowarth]

Hi Lana,

Upwards - 10% on 1st 50,000 - rumour came from Paphos.

Personally, I think their efforts would be better spent sorting out the alleged 40,000,000 held up because of problems with issuing Title Deeds.

Cheers,