The first and last property in Cyprus is be exempted from VAT To be imposed0 Replies
VAT on properties in Cyprus is excluded when The land that is for sale and is in agriculture area, for sale land that is in a livestock zone, for sale land that is in an environmental protection zone. The above exception applies regardless of the person or company that carries out the transaction, regardless of whether the transaction is from a person or company that carries out a business activity or not. People who do not engage in economic activity, the frequency of sales is examined and whether the property in Cyprus that is sold is property in an industrial zone, Property in a commercial zone, property in a tourist zone then impose VAT , in order is no distortion of the property in Cyprus. Note if the property in Cyprus sold is the first property or the last then it is excluded to be imposed to v.a.t.When the property is continuous and sold to a buyer as a single transaction and is the first or last property sold then it is excluded again, unless the property in Cyprus is in a commercial, tourist, industrial zone. Sale of a plot or plots to the company that will make the consideration to cover the costs of the division of the plots. The consideration contract must be given to v.a.t department. Sale of a piece owned by a company or cooperative that does not carry out any economic activity, where it does not engage in economic activity on a continuous basis (inactive company, investment company -holding company) does not create an obligation to register for VAT.Sale of a piece by a legal entity acquired as a result of a gratuitous transfer by a shareholder of the company and not used for economic activity by the company such as (lease or development) and delivered back to the shareholder without consideration is exempted from VAT.When the sales document has been submitted before January 1, 2018. If the transfer of the property has not taken place and it has a balance and the contract has been deposited in the land registry, then VAT is not paid on the balance. However, if the contract of the property has not been deposited in the land registry, then the remaining balance must be paid VAT.When it is done in the context of debt to asset, ie the property is given to the bank for debt or in the context of forced sale to the lender, then it is done with a reverse charge, ie VAT is not paid by the bank but when it sells the bank must charge it VAT for the specific property to the buyer and then the buyer if it is his first home to claim it back to the v.a.t and the v.a.t to return the 14% back.Today I talked to you about VAT on properties in Cyprus and when it is exempted.https://www.stavrinos-estates.com/id/v.a.t-in-cyprus-properties-exceptions/article.html?