VAT on home construction over 200 square meters

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Zoom123
Posts: 15
Joined: 12 Feb 2019 18:11

VAT on home construction over 200 square meters

Post by Zoom123 » 14 Aug 2019 21:12

Hello,

According to the law VAT is only 5% for the first 200 square meters of a house and 19% for every square meter beyond that. If you will build a house greater than 200sq.m. they estimate the VAT rate that you will be paying.

Does anybody know the exact formula that is used to find this rate?

Online I found the following: (200/(house_size*5%)+(house_size-200/house_size*19%)

So say for a 210sq.m. house it would be (200/210*5%)+(10/210*19%) = 5.66%

Is this correct?

Thanks!



Nigel Howarth
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Re: VAT on home construction over 200 square meters

Post by Nigel Howarth » 14 Aug 2019 21:53

Hi Zoom123

There used to be a leaflet on one of the Cyprus Government websites, but it's no longer there. There's an article - VAT on the purchase of real estate in Cyprus - that may give you a clearer picture.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Nigel Howarth
Site Admin
Posts: 2461
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
Contact:

Re: VAT on home construction over 200 square meters

Post by Nigel Howarth » 16 Aug 2019 21:46

Hi Zoom123

Looking at the example you would pay VAT at the reduced rate of 5% on the cost of the first 200sqm and VAT at the full rate of 19% on the cost of the rest.

If you know the cost of the 210sqm. house your having built and the cost, you should be able to work out VAT at 19% on the 10sqm.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

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