Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/24/2012

Cyprus - 5% VAT rate on construction, purchase of residence 

September 24:  Recent value added tax (VAT) guidance in Cyprus expands application of the “reduced VAT rate” (imposed at 5%) and makes this reduced VAT rate available to citizens from third countries in connection with their purchase or construction of a residence in Cyprus.

With respect to the reduced VAT rate, the guidance from the Cypriot VAT authorities provides that the 5% rate may apply to citizens of Russia, the United States, and China, among other countries, if the residence will be used by the applicant as the principal and permanent place of residence in Cyprus.


Read a September 2012 report [PDF 80 KB] prepared by the KPMG member firm in Cyprus: Developments with the application of 5% VAT on the purchase or construction of residence in Cyprus




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