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

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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 provided:
  • The applicant uses the property as his main residence for at least 10 years when he visits Cyprus
  • The applicant does not rent the property
  • 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

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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.