The Cyprus Parliament unanimously passed a bill on the 3.11.2011 suspending the payment of property transfer fees on properties subject to VAT for a period of 6 months. The bill also provided that the property transfer fee for purchases not subject to VAT will be reduced by 50% of the current level for the same time period.

The law also provided that purchasers who submit applications under the provisions of the Town Planning Amnesty will enjoy the same benefit.

Following the expiration of the 6 months it is expected that new legislation reforming the taxation of real estate in Cyprus will apply.

Pekris & Theodorou LLC is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.

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