Government to lower VAT for home renovations
President Nicos Anastasiades announced last week the government’s intention to lower VAT for the renovation of dwelling units, from 19% to 5%.
In his address to the 88th annual mmeeting of the Cyprus Chamber of Commerce and Industry (KEVE), the President said that the decision was taken following a proposal by the business community and upon the initiative of the Presidency, in cooperation with the Ministry of Finance. The proposal is expected to be adopted this week. The lower VAT will apply in renovations of all dwelling units, and not just in the case of primary residence, as was the case until now.
The President explained that vulnerable consumer groups and residents of remote communities will also benefit from lower VAT when repairing their homes, to upgrade their structural adequacy or to improve their energy efficiency.