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Cypriot Investment Scheme
Repossession Property Yield Properties

Latest news

  • 15 July 2019 Larnaca new high rise tower projects

    In Larnaca, some 20 – 30 high-rise residential developments and hotels... read more

  • 27 June 2019 Home Saves homes but also sells them away

    On September 2, applications for the Home project will begin. Yesterday the... read more

  • 18 June 2019 Citizenship by Investment Property Fair in Beirut Lebanon

    On 13 and 14 June 2019 we took part, together with our legal team, in the... read more

  • 13 May 2019 Petrolina will move storage units by years end

    read more

  • 6 May 2019 Energy saving measures grant scheme

    There are opportunities for those living in Cyprus to the reduce their energy... read more

What is the VAT settlement on plots Applies from 2018

The majority bill is expected to be adopted today for the introduction of VAT on land, which after many months of parliamentary treatment has been modeled in a way that will not lead to general application of the measure. Also, by decree of the Council of Ministers will be described the pieces of land that will be subject to VAT. 
In particular, the provisions of the bill to be put to the vote today provide for the following:
- VAT return on land sold under a loan restructuring and / or forced transfer to the lender or sold through a public auction procedure conducted by the lender will be carried out using the reverse charge method. It is a simple accounting entry in which the debtor is self-charging with VAT, which he claims at the same time.
- In the case of new contracts, VAT is charged on the rental / rental of immovable property for business purposes, while at the same time giving the lessor the right to opt not to levy VAT if he makes a relevant notification to the Tax Director.
- No VAT is charged on the sale of shares or companies' shares in the event that the sale is transferred to a property.
- 19% VAT is charged on the purchase and sale of unregulated land, which will be clearly intended for the construction of one or more constructions.
- The Ministerial Council may, by decree, determine the land plots falling under the category of undeveloped building land and the exact point to be taken into account for the purposes of determining the time of the transfer. In essence, an interpretative circular prepared by the Department of Taxation will gain a stronger legal status.
The final text of the draft law has been sent to the European Commission via the EU Pilot procedure, without having expressed any negative opinion on this, but stressing that the Tax Department should ensure that in the case of land sales excluded from the scope of the proposed law, but intended for development, to apply VAT.
According to the report of the parliamentary Finance Committee, the draft law was adopted by a majority of the members of the Democratic Alliance parliamentary group and the AKEL-Left-New Forces parliamentary group. Democratic Party, Citizens 'Alliance and Ecologist Movement - Citizens' Co-operation have reserved to be placed in the plenary session of the body.
Finally, the committee decided by a majority that the proposed law would be in force on 2 January 2018 to allow time for the market to adapt to the forthcoming regulations, with the exception of the provisions on the levying of VAT on the rental of immovable property, shall enter into force immediately with the publication of the law in the Official Gazette of the Republic.

Πηγή: http://politis.com.cy/article/ti-provlepi-irithmisi-gia-fpa-sta-ikopeda---efarmozete-apo-to-2018http://politis.com.cy/article/ti-provlepi-irithmisi-gia-fpa-sta-ikopeda---efarmozete-apo-to-2018