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!
VAT on home construction over 200 square meters
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Re: VAT on home construction over 200 square meters
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,
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
Read the latest Cyprus property news
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
Re: VAT on home construction over 200 square meters
Thanks. They seem to be using the same formula.
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- Site Admin
- Posts: 2920
- Joined: 24 Oct 2007 14:38
- Location: Erimi, Limassol, Cyprus
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Re: VAT on home construction over 200 square meters
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,
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
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news