New legislation was enforced on October 1st 2011, which enables Cyprus property purchasers to pay as little as 5% on their property purchase as long as the buyer will use the property for their own residential purposes.
This is definitely a positive measure from the new minister Mr. Kazamias and the Parliament who approved it. There is a letter by the VAT office, dated October 7th, outlining the new legislation and not before time either – Cyprus was more than ready to hear positive news in relation to the Property Market.
NOTE: The notification clearly states that any property bought before October 1st 2011 will not be covered under this new provision. Further to that the notification clearly states the following requirements for applicants to obtain approval:
As expected there are some restrictions i.e.:
The application must be accompanied with various details and documents, i.e.:
The applications must be made and delivered and or posted to the VAT offices in each district.
Finally the applicants must prove within six months from the delivery of the property that he/she is really a full resident of the property, using utility bills.
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