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Cypriot Investment Scheme
Repossession Property Yield Properties

Latest news

  • 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

  • 30 April 2019 KPMG Sales of many properties over 1 million

    The exogenous demand for luxury properties, particularly in Limassol, is... read more

  • 22 April 2019 Cyprus real estate investment Prospects and Risks

    The figures, trends and the state of the Cyprus real estate market over the... read more

  • 19 April 2019 Solution for trapped buyers edging closer

    Amendments to the law designed to resolve the Title Deed mess by enabling... read more

Return plan 14 percent VAT for first house plot

   

As the Treasury spokesman said before the Commission, the proposal will have retroactive effect from January 1, 2018, so as to cover even those who have already bought land for that purpose with the return of 14% of VAT. He noted that the relevant proposal, which will be included in the state budgets for 2019, is ready.

In statements after the Finance Committee meeting, Commission President Averof Neophytou said that in order to vote on VAT on immovable property "we had to look for the young couples buying a plot to build their own home and today pay VAT 19 % ", Adding that" the government today announced that before the state budget is approved for 2019 there will be a plan before us to reimburse 14% of VAT. " 
 
"They will pay 19% VAT, they will be reimbursed at 14%, so only 5% will be the cost of buying land for owner-occupation, and that's why a budget change will be made," he added.
 
On another issue, Mr. Neophytou said that with the introduction of 18% on the sale of immovable property, different interpretations are often created and he added that the Tax Office Chief has some sales judged that tax is paid as income up to 35% in some other cases it is an individual transaction and a capital gains tax is paid that is 20%. 
 
"These different taxes with interpretations that justifiably or unjustifiably exist by some who challenge them, is also the responsibility of the legislature and the Government to clarify it," he added. 
 
Mr. Neophytou said that a rate should be set for all cases and the seller should know when he is doing what will be his tax burden.

AKEL MP Andreas Kakalia said that in November 2017 the government bill for the imposition of 19% VAT on land was passed by Parliament, adding that from the first moment AKEL and other parties claimed the reduction of this tax at 5 % in the case of a purchase of land for the construction of a first residence, a measure that would mainly support young couples and other vulnerable groups of the population. 
 
He said that at today's session where AKEL asked for the issue to be discussed, we have been informed by the Ministry of Finance that the Government will submit a draft to the Council of Ministers within two weeks and added that "it is a positive development with a delay of one year for which we are expressing our satisfaction ".
 
DIKO MP Angelos Votsis said that President Averoff Novophytou had been promised that we would soon have specific legislation before us to deal with the problem of buying land for first-time housing by young couples where from 19% VAT to 5%.

He said that by reducing VAT, we can provide comfort to new couples who want to acquire land for their first residence and added that "today we have seen that our own pressures have resulted in a consistency from the Government in this promise with a commitment from the Ministry of Finance that the proposal that will be included in the budgets for 2019 with a modification to include this provision will be ready in the next 15 days. 
 
The most promising way is to refund 14% VAT on cases that have a retroactive effect on land purchase as of January 1, 2018, he added.
 
The President of the Citizen Collaboration Movement George Perdikis said that the VAT on housing needs to be re-examined as a whole, because very serious mistakes have been created during the voting of the legislation that have created inequalities. 
 
He said that "the legislation we all expect can have benefits, but as the Ministers of Finance have confessed, we are talking about a very limited number of couples" and will not have substantial benefits to society and the market.

Source: philenews / CNA