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