Amendment on VAT legislation for transactions involving immovable property

January 17, 2018

The House of Representatives of Cyprus on 3 November 2017, voted into law an amendment to the Cyprus VAT legislation, which will impose VAT at the standard rate of 19% on certain transactions involving immovable property that are carried out for business purposes and that currently are exempt from VAT, in order to be in line with the EU VAT directive.

These amendments are effective from 2 January 2018, with the exception of the provisions in relation to the leasing of immovable property, which entered into effect as from the date the law was published in the Cyprus Government Gazette i.e. 13 November 2017.

Imposition of 19% VAT on building land

Standard VAT rate of 19% will be imposed in all of the following cases:
transfer of ownership,
transfer of indivisible land portion,
transfer of ownership via contract or sale agreement or agreement which specifically provides that the ownership will be transferred on a future date or leasing agreement with buyout option,

Read the full article on Reanda Cyprus limited