For more details, explore our VAT calculator from the right.
Old Regulation | New Regulation | |
---|---|---|
Standard Rate (19%) | Does not qualify | Does not qualify |
Reduced Rate (5%) | Does not qualify | Does not qualify |
In Cyprus, VAT is generally not applied to the sale of old or previously owned properties. VAT is primarily applicable to new properties or those undergoing significant renovations that make them essentially new. Here are the key points regarding VAT on old properties:
In 2023, Cyprus made significant changes to the VAT regulations for property purchases, especially concerning the reduced VAT rate for primary residences. The new VAT calculation rules primarily affect residential properties and do not generally apply to commercial properties.
Here are the key updates:
These changes, outlined in Law 42(I)/2023, aim to make the reduced VAT rate more equitable and to accommodate specific needs, such as those of individuals with disabilities and large families.
Reduced VAT Rate Eligibility:
Conditions for Reduced Rate:
Transitional Provisions:
When calculating VAT for commercial property in Cyprus, the rules differ from those applicable to residential properties. Here are the key differences and considerations:
The VAT rules for land or plots in Cyprus are distinct from those for residential and commercial properties. Here are the key points to consider:
The VAT treatment of land or plots in Cyprus primarily depends on the intended use of the land and its classification under local planning regulations. Building land typically attracts a 19% VAT rate, while undeveloped or agricultural land may be exempt from VAT.
For more detailed and specific guidance, consulting the Cyprus VAT Authority or a professional tax advisor is recommended. This ensures compliance with the latest regulations and correct application of VAT.
Condition | OLD LAW | NEW LAW |
---|---|---|
Applied to Area | 200 sqm | 130 sqm |
Applied to Price | Not Applicable | 350 000 euro |
Total Transaction Value | Not Applicable | 475 000 euro |
Case Studies | ||
Case 1: Buying apartment size 100 meters and price 300 000 euro. | 15 000 euro | 15 000 euro |
Case 2: Buying apartment size 120 meters and price 360 000 euro. | 18 000 euro | 68 400 euro |
Case 3: Buying new apartment for personal use 150 sqm and 400 000 euro. | 20 000 euro | 76 000 euro |
Case 4: Buying house size 200 sqm and price 500 000 euro. | 25 000 euro | 95 000 euro |
Case 5: Buying house size 250 sqm and price 700 000 euro. | 54 600 euro | 133 000 euro |
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