NO BETTER TIME TO BUY PROPERTY IN CYPRUS - NEW INCENTIVES FOR PURCHASING PROPERTY
The Cyprus government has recently introduced new tax laws incentives to make Cyprus even more attractive for purchasing property, effectively giving investors tax-free profits until the end of 2016.
1. TRANSFER FEES For Property transfers up until the 31st December 2016:
▪ Zero transfer fees on property where VAT is applicable.
▪ 50% reduction on transfer fees for property with no VAT applicable.
2. CAPITAL GAINS TAX ▪ Zero capital gains tax on sale of property, purchased between 16th July 2015 & 31st December 2016.
3. REDUCED VAT
Property purchased for use as the primary and permanent place of residence a 5% VAT rate is applicable (on application). It is no longer required (as it was previously) to become a permanent resident first and then to apply for the special rate of 5% Cyprus Property VAT.