Cyprus | Posted:

 

The Association of Cyprus Property and Land Developers expressed satisfaction for  the Cyprus Parliament's decision to extend for a further six months the Legislation that provides for the abolition or reduction of 50% of the property transfer fee and  also the passing of the amended VAT Act to broaden the scope of the reduced rate ( 5%) to cover citizens of countries not members of the European Union and the need for applicants to be  permanent residents of Cyprus.

The Association states that "It is our belief that the beneficial effects of the law for transfer duties are now beginning to emerge in the real estate market, taking into account the reduced funding by financial institutions. We believe that taking the above measures will help the effectiveness of efforts and other measures now being taken to revive the economy and tackling the recession and unemployment. " also “The crisis affects our credit institutions, creates a lack of liquidity and high interest rates, so it is vital not only to maintain existing incentives but to provide new and to keep alive the real estate and tens of thousands of jobs on the industry and many other dependent or affected by it”

The President of the Cyprus Property and Land Developers association, Mr Pantelis Leptos, expressing satisfaction at the two decisions of the Cyprus House of Parliament, pointing out that "despite the fact that the two new Laws seem to deprive revenue from the state, we are confident that with the increase of number of sales and the revival of the construction industry, the Cyprus Government will for sure increased its revenues and save substantial amounts on unemployment and other benefits. " The increase in sales, Mr. Leptos said, "will inevitably lead to increased government revenues, since 20-30% of each property’s price is paid to the Government in the form of taxes and fees. Furthermore, the increase in permanent tourists in Cyprus (buyers) will lead to an inflow of capital and increased demand for goods and services. "