Understanding VAT Implications on Rental of Immovable Property in Cyprus: Rules and Exceptions

• VAT is a key part of the tax system in Cyprus, aligned with EU directives.
• Residential property rentals for dwelling use are VAT-exempt.
• Commercial property rentals have a mandatory 19% VAT since 13 November 2017.
• Short-term rentals with hotel-like services are subject to 19% VAT.
• Mixed-use properties require VAT apportionment based on use.
• Rental income to taxable persons for business activities is subject to 19% VAT.
• Landlords can opt out of charging VAT by submitting a declaration, which is irrevocable.

Source: oxfordglobalservices.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.

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