On the 18th of November, at the Annual General Meeting of the Cyprus Chamber of Commerce and Industry, the President of the Republic of Cyprus, Nicos Anastasiades spoke about the progress of the economy and announced, among others, the Government’s plans to lower the VAT rate from 19% to 5% for all home renovations.
Please note that previously, the reduced VAT rate was applicable only in the case of primary residences. Additionally, vulnerable groups and residents of remote areas will be able to benefit from the reduced VAT rate, in order to improve the energy efficiency and consolidate the structure of their houses.
The approval and the adoption of the aforementioned proposal is expected to take place during the following Council of Ministers’ meeting.
For legal advice on any matters regarding property taxation in Cyprus, you can get in touch with our team.