Everyone who is interested in Cyprus property can save up to 12% of the actual price of the property as the former VAT rate was 17%!

Last week, the Cyprus Parliament has amended the current legislation regarding the imposition of VAT on the acquisition of new properties, VAT is imposed at the rate of only 5% on the acquisition of residence which is used as a primary and permanent place of residence in Cyprus by an eligible person.

With the current amendment the charging of VAT at the rate of 5% is extended to:

·to persons who are not citizens of the European Union
·to persons who have their primary and permanent place of residence outside Cyprus when they use the residence in question in Cyprus as their place of residence when they are located in Cyprus

This is a determinant factor that would help whoever desires buying a property even he isn't living in Cyprus permanently or he isn't a citizen of the European Union.