Reduced VAT for homebuyers within 12 months

The parliament has passed a law enabling beneficiaries to apply for a reduced 5% VAT rate within a year of acquiring a residence. The bill, proposed by the AKEL parliamentary group, aims to amend the Value Added Tax Law, granting the Tax Commissioner the authority to allow responsible declaration submissions by eligible individuals. This allows them to benefit from the reduced 5% VAT rate for purchasing or constructing a home within twelve months of acquisition.

AKEL MP Andreas Pasiourtidis explained that due to various reasons, some beneficiaries submit their applications late, such as health issues or residing abroad. The proposal aims to provide them a twelve-month window to apply and benefit from the reduced rate.

Diko MP Chrysis Pantelidis praised the law, affirming their support, noting that despite concerns, the market has continued to function smoothly since the VAT rate adjustment six months ago.

Stavros Papadouris, MP for the Movement for Ecologists - Citizens' Cooperation, welcomed AKEL's amendment and supported it, acknowledging that regardless of the legislation, there will always be unique cases requiring the Tax Commissioner's sensitivity and flexibility for adjustments.

[With information sourced from CNA]