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News: VAT hike could boost demand

Tue, 10 Apr 07

The possibility of VAT charges on land sales in 2008 could well push up housing demand in 2007, BuySell Cyprus has warned...

VAT is already charged on Cyprus new builds although permanent residents on the island can obtain refunds on their primary residences. However, from next year residential land and tourist plots are likely to be included in the VAT net.

BuySell manager Litsa Chrysostomou warned: “As the date for the introduction of VAT on land grows closer, demand for land and property will be increasing. Indeed, those individuals who have been toying with the idea of buying property in Cyprus will be keen to make the purchase and avoid paying VAT on land’

He concluded: “It is expected that this increase in demand, in an already buoyant market, will lead to an increase in house prices”.

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