June 2012: Changes in Vat rate and transfer fees

In June 212 a string of tax incentives to boost growth was passed through the House of Parliament aimed at boosting business activity and attracting foreign investments on the island. Among others, income tax laws have been amended so that a 5 per cent VAT paid on homes, intended as primary and permanent residences, is extended to purchases by non-EU nationals.

In the Parliament also extended the period for reduced property transfer fees until 31 December 2012. Under the scheme, if you pay VAT on your house purchase, you’ll pay no transfer fee at all and if you are eligible to pay VAT on your purchase, your property transfer fee will be reduced by 50 per cent.