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Since Cyprus’ EU accession in 2004, a standard VAT rate of 19% is required to be paid when buying a new property.
However, following a recent VAT Amendment Law, a reduced VAT rate, starting from 5%, is applicable for the acquisition of new residential properties.
For the reduced rate to be in effect, certain terms and conditions must be met:
-The property must be used as the primary and permanent residence of the applicant (for the next ten years).
-The applicant has not acquired any other residence in Cyprus with a reduced VAT rate.
-The applicant must be an individual, over 18 years old, thus legal entities are excluded.
The reduced VAT rate of 5% is applied on the first 200 square meters (building coefficient) of the property as per the architectural plans submitted to the Authorities. On the remaining square meters, the standard rate of 19% is imposed.
The fees charged by the Department of Land and Surveys for the transfer of immovable property are:
| Property Price | Rate | Fee | Acc.. Fee |
|---|---|---|---|
| First €85,000 | 3% | €2,550 | €2,550 |
| €85,001 – €170,000 | 5% | €4,250 | €4,250 |
| Over €170,000 | 8% |
Properties subject to VAT are exempt from the above transfer fees.
Properties not subject to VAT are eligible for a 50% exemption from the above transfer fees.
Important: Properties subject to VAT are excempt from Transfer Fees.
Parekklisia Why choose the village of Parekklisia to build your Dream House? Parekklisia is a village in the Limassol Suburbs, located northeast of Agios Tychonas. It's 20 KM away from the Limassol City Centre and only 4KM away from the beach! The village's rich history and stunning scenery will make you and your family stay there forever.
Notwithstanding that 40% of Cyprus is covered with trees and bushes it has a long way to go in upgrading the environmental requirements.
To this end, the recent announcement by the Minister of Agriculture to plant more and more trees to help buffer climate change is a decision in the right direction. How is this implemented, however? It is a fact that people’s sensitivity is improving, and we note in particular that development projects have increased “private green areas” instead of using concrete/asphalt to cover the surface. For this event, we have suggested that at least the same number of cut down trees should be replaced, subject to availability of space +30%.
Tree planting should match the vegetation of the area where this is available. Trees require a lot of love and looking after, but then this is an investment that adds to the environmental value and of course to the value of the project/property.
For private housing, it is more of a must to have a lemon/orange trees, as well as olive trees, which “contribute” to the home enjoyment. Tree planting is especially suitable for seaside areas, where humidity helps, whereas more exotic trees (such as cedars – most beautiful) must have a cold climate, whereas other exotic fruit trees, including papaya, avocado etc are suitable for the purpose. Also, Palm trees, olive, carob trees. Any tree/vegetation in your home/project is reflected in the property’s sales value, so do not believe that tree planting and maintenance is wasted money. Far from it, it returns the cost in the form of added value several times over. We have a long way to go in upgrading our environment which is why the University of Cyprus University has undertaken several tree planting projects, ranging from olive to carob trees on a large scale.