5% VAT Rate on New Homes Extended

5% VAT Rate on New Homes Extended: Parliament Approves New Law

The 5% VAT rate on new homes has been extended, allowing beneficiaries to apply for the reduced rate within one year after purchasing their primary residence. The parliament passed this law with 34 votes in favor and one against, ensuring that more homeowners can benefit from the lower tax rate.

More Time for VAT Applications

The AKEL parliamentary group proposed an amendment to the Value Added Tax Law. This change gives the Tax Commissioner the power to process applications from eligible individuals. Now, homebuyers have 12 months from the date of purchase to apply for the 5% VAT rate on new homes.

Reason for the Extension

AKEL MP Andreas Pasiourtidis explained the reason behind the law. Many beneficiaries delay their applications due to health issues or living abroad. With this extension, they now have more time to secure the reduced VAT rate.

Support from Political Parties

Several MPs welcomed the law. Diko MP Chrysis Pantelidis noted that despite concerns about VAT adjustments, the real estate market remains stable. He believes this change will reassure homebuyers.

Meanwhile, Stavros Papadouris from the Movement for Ecologists – Citizens’ Cooperation also supported the amendment. He emphasized that the Tax Commissioner should remain flexible and consider exceptional cases.

Impact on Homebuyers and the Market

This extension will help homebuyers and the real estate market. With a longer application window, buyers can plan their finances better without rushing to meet deadlines.

Experts believe the measure will increase market stability, encourage homeownership, and prevent unfair financial burdens.

With the 5% VAT rate on new homes extended, more buyers will have the chance to benefit from the reduced tax, making homeownership more accessible.