Do I have to pay VAT on my house purchase or transfer fees? By Demetris Demetriades in Cyprus in Style Magazine…

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Do I have to pay VAT?

Bearing in mind that VAT can be as high as 19% and is added on top of the purchase price, this is something that any home buyer should look into before buying their dream house.

VAT is chargeable on the first sale of new buildings or parts of buildings, and the land on which they stand if the application for a planning permit was submitted after 1 May 2004. No VAT is charged on any subsequent sales you make. Thus, if you are buying a resale property, you wouldn’t be liable for payment of VAT, although you would still be liable to pay Transfer Fees.