Vat on Property

Currently Vat is charged at 19% on the purchase price of the property and is paid by the buyer.

However, if the applicant buys a house or apartment up to 200 square meters, then Vat is ‘charged’ at 5% or if the area of the house or apartment is up to 275 square meters, then Vat is ‘charged’ at 5% on the first 200 square meters and 19% on the area of the house or apartment exceeding 200 square meters to the maximum of 275 square meters provided:

  1. The applicant uses the property as his main residence for at least 10 years when he visits Cyprus
  2. The applicant does not rent the property
  3. The applicant gets approval for the Vat 5% rate from the Vat authorities.  When this happens the applicant is reimbursed with the overpayment of Vat (19% - 5%)

Example:  Purchase Price of a house of 250m² for €500.000

Calculation of Vat payable:

200   m²   x   €500.000   x  5%   =   €20.000
250

 

50   m²   x   €500.000   x   19%   =   €19.000
250
Vat Payable €39.000

 

Vat is also charged on purchase of land at 19% on the purchase price.