Updated
GL-C-07
Glossary · Cyprus PR
Commercial property for Cyprus PR - option B
Investing €300,000 in offices, shops, hotels, similar property or a combination
01 / In 30 seconds
The short answer
- What it is
- Investing €300,000 in offices, shops, hotels, similar property or a combination
- Resale
- Allowed, unlike housing
- Tax
- New - 19% VAT, resale - transfer fee if the building has 18 months of use
- Housing
- You must separately show a home in Cyprus: title, contract or lease
02 / In plain words
What Commercial property for Cyprus PR means
Commercial property for PR (option B of the criteria) means buying offices, shops, hotels, similar property or a combination for €300,000. Unlike housing, resales are allowed here.
The tax depends on the property. New commercial property carries 19% VAT on the full price. On a resale a transfer fee is paid instead of VAT: at €300,000 this is €8,600 versus €57,000 VAT. But from 01.09.2026 a building used for less than 18 months counts as new, and 19% VAT applies again.
Two points to note. Under option B you must separately show a home in Cyprus: a title, a paid contract or a lease. And non-EU citizens face the Cap. 109 limit: a home and a shop up to 100 m², or a home and an office up to 250 m², while a separate office or a larger area needs a separate administration decision.
A simple example
A client buys two resale shops in Limassol for €300,000 and rents a flat. The building is 6 years old, so a €8,600 transfer fee is paid, not €57,000 VAT. With the deposited contract and the lease, the family applies for PR.
When clients choose commercial property for PR
- You want rental income rather than your own home
- You found a good resale
- You want to avoid 19% VAT on a resale
- Combining an office and a home
- Buying an existing rental business
03 / What it covers
Key facts about commercial property for PR
What qualifies
- Offices
- Shops
- Hotels and similar property
Taxes
- New - 19% VAT
- Resale - transfer fee
- Under 18 months - 19% VAT
Cap. 109 limit
- Home and shop up to 100 m²
- Home and office up to 250 m²
- More - separate decision
What else is needed
- Proof of a home in Cyprus
- Leases, if let
- Search certificate
04 / How it works
How to buy commercial property for PR
Shortlist
Offices, shops, hotels for €300,000.
Limit check
Area within Cap. 109.
18-month check
Transfer fee or 19% VAT.
Contract and payment
Deposit and €300,000 paid.
PR application
With proof of a home in Cyprus.
05 / Key facts
What matters
01Resale
Allowed
Under option B you can buy a property with a previous owner, unlike housing.
02Tax
€8,600 or €57,000
On a €300,000 resale - a €8,600 transfer fee. On new property or a building under 18 months of use - 19% VAT, €57,000.
03Cap. 109 limit
Office up to 250 m²
A home and a shop up to 100 m², or a home and an office up to 250 m². A separate office or a larger area needs a separate decision.
04Home in Cyprus
Shown separately
Under option B you state where you live: a title, a paid contract or a lease.
Common mistakes
Buying commercial property and forgetting about housing
Under option B a home in Cyprus is shown separately. A lease also works.
Buying an office above the limit without a decision
Non-EU citizens face the Cap. 109 limit. We check the area before any deposit.
Not checking the building's age on a resale
If it has less than 18 months of use, 19% VAT applies instead of the fee.
06 / Expert advice
How to prepare in advance
Decide where you will live in Cyprus: buy, sign a contract or rent. If the property is let, ask the seller for the leases.
What we do for you. We shortlist commercial property for option B, check the Cap. 109 limit and the 18-month rule, and calculate the taxes.
Igor VentsHead of real estate, Title Deed and property checks
07 / Questions
Frequently asked questions
Offices, shops, hotels, similar property or a combination for €300,000.
Yes, resales are allowed under option B.
A transfer fee: at €300,000 it is €8,600. If the building has been used for less than 18 months - 19% VAT.
19% VAT on the full price.
You must show a home: a title, a paid contract or a lease.
For non-EU citizens the Cap. 109 limit applies: a home and a shop up to 100 m², or a home and an office up to 250 m².
Cyprus PR glossary
- Cyprus PR programme →
- Cyprus PR
- ARC (Cyprus alien registration)
- Form MIP2
- Cyprus residence card
- Cyprus PR criteria
- Cyprus Migration Department
- Secure annual income
- Dependent students 18-25
- Cyprus PR monitoring
- Cyprus Department of Lands and Surveys
- Title deed in Cyprus
- DLS search certificate
- Encumbrance in Cyprus
- Separate title deed in Cyprus
- Developer mortgage in Cyprus
- Reservation agreement in Cyprus
- Sale contract in Cyprus
- Contract deposit in Cyprus
- Specific performance law
- Direct title issue to the buyer
- Cyprus transfer fees
- Planning permit
- Building permit
- Certificate of final approval
- Division permit
- First sale from a developer
- Short-term rental licence
- VAT on Cyprus property
- Reduced 5% VAT on housing
- Cyprus tax identification code
- Cyprus stamp duty
- Cyprus capital gains tax
- Special defence contribution
- Cyprus non-dom status
- GESY health contribution
- Cyprus tax residency
- Cyprus income tax
- €300,000 investment for Cyprus PR
- Investment in a Cyprus company
- Investment in a Cyprus fund
- Cyprus PR government fees
- Source of funds for Cyprus PR
- Cyprus bank account
- Family members in Cyprus PR
- Apostille for Cyprus
- Certifying officer in Cyprus
- Citizen Service Centre (KEP)
- Sworn translator in Cyprus
- Police clearance for Cyprus
- Plan A health insurance
- Power of attorney for Cyprus
- Income affidavit
- Non-employment declaration
- Medical tests for Cyprus PR
- Cyprus citizenship by residence
- All terms →
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