- Cyprus has extended the transitional 5% VAT rules for residential property until December 31, 2026 due to planning delays.
- Under the old rules, the 5% rate applies to the first 200 m² of a primary residence, with no total size or value cap, if permit timing conditions are met.
- If those transitional conditions are not met, the stricter post-2023 rules apply: 5% VAT only on the first 130 m², for homes up to 190 m² and €475,000.
- New “first occupation” and “first use” rules start on September 1, 2026, replacing the five-year test with an 18-month systematic use requirement.
Source: irglobal.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.
Latest Posts in "Cyprus"
- Cyprus VAT Law Changes for Construction and Residential Property
- Cyprus Updates VAT Rules on New Buildings and Renovations
- Cyprus Fiscal Documents: Strict Layout and Compliance Rules
- Cyprus VAT Amendments on New and Renovated Property Supplies
- Cyprus Extends Reduced VAT Deadline for New Primary Residences Under Specific Conditions
