The House of Partliament has recently passed a new law that reduces the VAT from 15% to 5% as of the 1st of October for every purchase or erection of new residence premises.

The applicant should be a physical person who is at least 18 years old and also a citizen of the Republic of Cyprus or any other member of the EU that is a permanet resident in the Republic of Cyprus.

Furthermore he is using this as his main and permanet resident.

Spouses can apply for the reduce VAT in their declaration as long as it is the first one.

This apply only for agreements signed after the date of 1st of October 2011.
The law further states certain conditions that need to be fullfiled by the applicant inorder he will be allowed for the reduce 5%VAT. The main are:

The total area should not be exceeded of 275sq.m
The planning application should have been submitted after the 1 st of May 2004.
The residence should be used for the first time after its erection as the first and main residence house.
For other conditions and further information please contact us.