- From 1 September 2026, Cyprus will implement a revised VAT framework for real estate, shifting from time-based to use-based rules.
- The new system introduces the concepts of “first occupation” and “first use,” with VAT applying to buildings supplied before first occupation and exemption after systematic use for at least 18 months.
- Transitional provisions for the previous 5% VAT regime expire on 15 June 2026, with limited extensions for delayed applications.
- The 5% reduced VAT rate for primary residences remains, but eligibility now depends on the new definitions of “first occupation” and “first use.”
Source: harriskyriakides.law
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 Extends Reduced VAT Deadline for New Primary Residences Under Specific Conditions
- Cyprus Extends Reduced VAT Housing Application Deadline to 31 December 2026 Amid Permit Delays
- Cyprus Extends VAT and VIES Deadlines to 20 May 2026 Due to TFA System Shutdown
- Reduced 5% VAT on New Dwellings: Key Updates, Deadlines, and Transitional Provisions
- Cyprus Lowers VAT on Electricity Supplies to 5% for Residences and Public Assistance Recipients
