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Save searchCyprus has lost more than €1 billion in tax revenue due to the reduced 5% VAT rate, which was widely used by buyers of luxury villas rather than the families it was intended to support. Under pressure from Brussels, the Cypriot authorities have set a firm deadline: 31 December 2026 will be the final day to purchase property under the previous, highly favourable VAT rules.
The authorities have already launched a large-scale review of 12,000 previously issued permits and plan to restrict investment in residential property, redirecting investors’ capital to other sectors of the economy.
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