fbpx
Mon – Fri 08:00 – 17:30 +357 22 276000
  info@mcmillanwoods.com.cy

VAT refund on the purchase of a plot by a private individual

McMillan Cyprus > Articles > VAT refund on the purchase of a plot by a private individual

VAT refund on the purchase of a plot by a private individual

The Cyprus tax authorities announced on 24 September 2019 that individuals who had purchased undeveloped building land on or after 2 January 2018 for the sole purpose of constructing a dwelling to be used as their principal and permanent place of residence would be entitled to a partial refund of the VAT paid.

VAT originally would have been charged at the standard rate of 19% on the value of the plot. The VAT refund would be equivalent to VAT at 14%, reducing the effective VAT rate to 5%.

To claim the refund, the taxpayer would be required to submit an affidavit in a format to be specified by the tax authorities and the Tax Commissioner recently published the relevant form on the tax authorities’ website.

The affidavit must be completed and submitted at the same time or after the submission of the affidavit required to apply a reduced rate of VAT on the purchase or construction of a residence, necessary where the taxpayer is building a house on the site.

 Within six months after occupying the property as their principal and permanent residence, the taxpayer must submit the necessary forms and supporting documentation (e.g. utility bills). The VAT refund will be made once all the required documentation has been submitted. 

 How are you affected by the above decision?

Individuals who purchase separately the plot of land to be used for the construction of their principal and permanent residence have the right to a partial refund of the VAT paid (14% of the value of the plot).

About McMillan Woods Cyprus
Central offices are located in Nicosia Strovolos, Piraeus Street 36.
22 276000
info@mcmillanwoods.com.cy
www.mcmillanwoods.com.cy

Print Friendly, PDF & Email
Feel free to like and share:
We are using cookies to give you the best experience. You can find out more about which cookies we are using or switch them off in privacy settings.
AcceptPrivacy Settings