Cyprus Ministers look to mitigate EU property VAT ruling

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The EU is putting pressure on the Cyprus government to introduce VAT (currently at 19%) on all building and development land sales in Cyprus, or be liable to face hefty fines from the European Commission unless it implements the EU VAT Directive of 2006 into national law.The Cyprus government is working to counterbalance these charges to keep prices competitive within the housing market by abolishing property taxes from 2017 and employing a 50% reduction of transfer fees.