The Cypriot Parliament approved yesterday amendment of the legislation referring to the imposition of the reduced rate of Value Added Tax (VAT) of 5% on the supply or construction of a residence based on the following conditions:
If both conditions are met then:
The law approved by the Parliament also provides that in the case of persons with disabilities the reduced VAT rate (5%) is applied for the first 190 sq.m (not the first 130 sq.m. which is applicable to persons without disabilities) of buildable residential area.
The amendment also provides for a transitional period, so that the new provisions will not be applied, in cases where a planning permit has been secured or an application has been submitted to secure a planning permit within four months of the entry into force of the proposed law.
For any further help, feel free to contact us at VAT@kinanis.com