- Circular 2/2025 was published on 24 March 2025 by Cyprus’ Commissioner of Taxation.
- It provides guidelines for rental property owners who have not exempted their property from VAT.
- The circular is valid until 31 December 2025.
- Renting non-residential property for business activities is subject to 19 percent VAT.
- These rules apply to leases concluded or renewed on or after 13 November 2017.
- Property lessors can opt out of charging VAT by notifying the Commissioner with form TD1220 within 30 days of signing the lease.
- Owners who have not notified previously can submit form TD1220 by 31 December 2025 if they have not charged VAT and complied with all tax obligations.
- From 1 January 2026, lessors must notify the Commissioner within 30 days of signing the lease.
- Extensions for notification may be granted if needed.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
