• +357 (24) 822 700
  • info@newzoedevelopers.com
  • Neapolis Street 1, Forest Beach Estate Shop 5, 7041 Oroklini

They Will “Pinch” House Prices And… Seeing
In anticipation of tomorrow’s new debate in the Parliamentary Committee on Finance on the much-vaunted bill that places restrictions on beneficiaries of reduced VAT of 5% when buying or building a primary residence or apartment, information from parliamentary parties indicates that there is an intention by the majority to amend the bill, although the finance minister has warned that any change in the text may provoke the reaction of the Commission or even the referral of Cyprus to the Court of Justice of the EU.

It is almost certain that the parties will attempt to slightly increase the maximum values of properties benefiting from reduced VAT, although they have not yet decided at what point the values of apartments and residents will be determined. The parties are particularly keen on the issue of apartments, as they consider that the supply of apartments with a value of less than 200,000, as foreseen in the bill, is not large, so many couples looking for housing in apartment buildings will be affected.

At the same time, there are suggestions that 5% should be applied for a different maximum area of square meters when the property is built on a privately owned plot and on a different one when the citizen buys the residence.

All parties, including those in the coalition, disagree with the bill being debated in parliament. They argue that the restrictions put in place are too strict, as the maximum values of the properties that will be able to benefit are considered low, after the previous successive increases in construction costs. In fact, despite the serious possibility that Brussels will not accept changes to the bill, a majority of MPs in the Commission are in favor of taking the risk of amending the bill.

At tomorrow’s meeting of the Parliamentary Committee on Finance, they will attempt, in a closed-door discussion, to find a formula that will not deviate from the restrictions set by the Commission and at the same time justify the changes.

Members of the Finance Committee told “F” that they will seek to move consensually so that the appropriate messages are sent to the European Commission. As we have been told, in this way they may be able to convince Brussels of the necessity of the changes, as they strongly believe that the bill under discussion does not correspond to the real market data and the needs of consumers. This is because it was prepared with the data for 2019-2021, instead of with the data for 2022, during which prices, values, and construction costs went up. The bill provides for the imposition of 5% VAT on the first 170 sq.m. of residences, with a total area of up to 220 sq.m. and with a transaction value of up to €350 thousand. Also, reduced VAT will be imposed for the first 90 sq.m. apartments, with a total area of up to 110 sq.m. and with a total value of up to €200 thousand. Both during the contacts between the new government and the previous government, the Europeans insisted that the bill as it stands is the maximum they can accept.

Source : Θα «τσιμπήσουν» τις τιμές των κατοικιών και… βλέπουμε (philenews.com)

For Resale Properties visit Palourtis Real Estate Agents