Are Properties loaded with VAT when purchased in Cyprus?
A 15% VAT on new build properties is added to the asking price ( Sometimes is included ) with an exception of projects and buildings which have already applied for the planning permit prior 1st May 2004. The 15% VAT affects all new projects coming into the market, but the price increase is closer to 5% due to a law which refunds 10% of the VAT to the first time buyers on a certain defined criteria for prices, size and years residency. Land and building sites are for the time being exempted from VAT. It is estimated that VAT will be added to land and building sites somewhere from 1/1/2008 to 1/6/2008.
