Cyprus Property Forum for Buyers, Sellers & Investors

Hi Nigel
We purchased our new build property in 2005 and in 2017 once we had our title deeds we applied for a refund of the VAT we had paid and this was granted. We are now selling the property but have been told by our lawyer that as we received the rebate in 2017 and it is therefore less than 10 years since we received it, we will have to repay a portion of the refund.

I was always under the impression that the rules were you had to own the property as your permanent residence for 10 years to avoid having to repay any of the rebate. It seems bizarre that the 10 years commences when you actually receive the rebate.

Would appreciate any guidance on whether you believe this is correct.

Many thanks

Brian

Hi Brian

Sadly, your lawyer is correct. You'll have to repay a portion of rebate.

Regards,

Thankyou for your speedy response Nigel.

Hi Brian

I've done a bit more digging:

As from 8 June 2012 the reduced rate of 5% applies to the acquisition and/or construction of residences to be used by eligible persons (residents of the Republic or/and other EU member states or other non EU member states) as the primary and permanent place of residence, only after obtaining a certified confirmation from the Commissioner.

The statutory declaration may be filed at any stage at the time of construction of the residence or in case of supply prior to the eligible person obtaining possession.

Regards,