Since November 1st, a new law on Value Added Tax (VAT) calculation for the purchase of primary real estate has come into effect in Cyprus.

Previously, a reduced VAT rate of 5% was applied to the first 200m². Now, a 5% VAT can be applied when acquiring the first or main residence with an area of up to 130m² and a cost of up to 350,000 euros. If you are purchasing an apartment or house with a value of up to 475,000 euros and an area of up to 190m², only the first 130m² are subject to a 5% VAT, while the remaining area incurs a 19% VAT.

☝️It’s important to note that the use of the reduced rate imposes certain restrictions. For example, property acquired this way cannot be rented out.

To learn more about the rules of VAT calculation and the exceptions provided, you can request a free consultation:

🤖Telegram bot: @replacecy_bot
☎️ +35725054738 +74951333159