VAT reclaim

[AndrewN]

Hi Nigel,

I believe that it is possible to re claim vat on a property purchase in Cyprus if you the use of your property is for holiday let only, as long as you register for vat & charge holiday makers 8% vat. Have you heard of such a claim?

I am looking for a reputable tax specialist/accountant who could assist me on making a claim if valid. Could you recommend one?

Many Thanks


Andrew

[Nigel Howarth]

Hi Andrew and welcome to the forum,

I did reply to the email you sent me just over a week ago, but your mail server rejected it.

Someone else contacted me about this scheme and I found a website at http://ipsbmv.com/index.php?id=84 that also talks about this. (I've just checked the site again and the information has now been removed).

There is a scheme - a special grant - that enables lower income home buyers recover an element of their VAT. You can read more about this at http://www.cyprus-property-buyers.com/l ... ations.htm

But you can only claim this grant if you are a permanent resident in Cyprus and the authorities will check your telephone, electricity and water bills - and your sources of income to ensure that you are eligible.

I am very sceptical about the deal you are being offered - I suggest that you contact the company and ask for more details as it is certainly news to me!

Regards,

[AndrewN]

Hi Nigel

Many thanks for your reply & welcome. All of my initial research did indicate that I would have to be a permanent resident to re claim the vat, however I have spoken to the Ministry of finance in Cyprus last week who confirmed that If a property is run as a holiday let business a claim is possible.

Due to the fact that the company you refer to are charging alot of money to claim, I wondered whether you knew of a reputable tax specialist/accountant who I may be able to go to for help & advice.

Regards


Andrew

[Nigel Howarth]

Hi Andrew

As well as the Ministry of Finance, you may need a licence from the Cyprus Tourism Organisation (CTO). There has been some discussion about CTO licensing and whether it is still required - or whether EU Directives on the subject take precedence.

There are several CTO laws and regulations - a list of which you can find at Accommodation Laws and Regulations.

I think the best thing to do is contact a lawyer - you'll find a list of those provided by the British High Commission in Nicosia at Finding lawyers in Cyprus. They should be able to advise you about the law and the costs involved.

Regards,

[AndrewN]

Thanks for the information

Regards

Andrew

[drillerdrew]

Nigel

I have been recently contacted by a company based in Paralimni advising they can help me reclaim the VAT on my property as its let as short term.

I wanted to check if you had any other recent queries from other owners as I am somewhat dubious - They have emailed me details of what information they require which I will forward to you by PM but have stated to me they operate on a no win no fee.

Any comments would be appreciated.

Thanks

Drew

[Nigel Howarth]

Hi Drew and welcome to the forum.

I've just replied to your email about this.

Regards,