Parliament Extends Reduced 5% VAT on Housing Purchase Until 2026
The Cypriot Parliament voted, with the exception of the AKEL party, to extend the reduced 5% VAT rates on the purchase or construction of primary residences until the end of 2026. The tax authority will henceforth handle approvals to avoid potential objections from the European Commission. This regulation was initially limited to 2024 and is now being extended again.