Updated
GL-F-07
Glossary · Cyprus PR
First sale from a developer - the only housing route to Cyprus PR
A developer selling a new home for the first time, before it has had any other owner
01 / In 30 seconds
The short answer
- What it is
- A developer selling a new home for the first time, before it has had any other owner
- Why it matters for PR
- Under option A only a first sale counts
- How much
- From €300,000 excluding VAT, up to two properties, developers may differ
- Tax
- VAT at 19% or 5%, no transfer fee
02 / In plain words
What First sale from a developer means
A first sale is a developer selling a new house or flat for the first time. For Cyprus PR under option A it is the only eligible type of housing: the criteria require a purchase from a developer as a first sale for at least €300,000 excluding VAT.
You can buy one or two properties, and the developers may differ. Resale housing does not count for PR, except contracts filed with the DLS before 07.05.2013. The property may be under construction: at filing you need €300,000 paid and a deposited contract.
A first sale carries VAT: 19%, or a reduced 5% if the home becomes your main residence and meets the conditions. There is no transfer fee when VAT is charged. The separate title in a new build comes later, which does not affect PR.
A simple example
A family buys two flats from two developers in Limassol: €180,000 and €130,000 excluding VAT. Together this is over €300,000 and both are first sales. Once both contracts are paid and deposited, the family applies for PR.
When the first sale rule matters
- Choosing housing for PR under option A
- Buying two flats from different developers
- Buying an off-plan flat
- Working out VAT at 19% or 5%
- Checking the property had no previous owner
03 / What it covers
Key facts about a first sale
PR conditions
- From €300,000 excl. VAT
- Up to two properties
- Developers may differ
Taxes
- VAT 19%
- VAT 5% on a main home
- No transfer fee
At filing
- €300,000 paid
- Contract deposited
- Title not required
What we check
- Seller is the developer
- No previous owner
- Project permits
04 / How it works
How to buy a first sale for PR
Shortlist
New homes from developers that meet the criteria.
Property check
Permits, encumbrances, first sale.
Contract
Signing and deposit at the DLS.
Paying €300,000
Transfers from abroad, receipts for the file.
PR application
With the deposited contract and payment.
05 / Key facts
What matters
01First sale only
Option A
Housing counts for PR only if you buy it from the developer for the first time.
02Up to two properties
Developers may differ
The €300,000 excluding VAT can be made up of two properties from different developers.
03VAT instead of transfer fee
19% or 5%
With VAT there is no transfer fee. 5% applies only to a main home under the conditions of the law.
04Off-plan works
Title later
Paid €300,000 and a deposited contract are enough. The separate title may come months or years later.
Common mistakes
Buying from a private owner for PR
That is a resale and does not count. For option A we buy only from a developer as a first sale.
Counting €300,000 including VAT
The threshold is €300,000 excluding VAT. VAT is paid on top.
Filing before €300,000 is fully paid
At filing €300,000 must be paid and the contract deposited.
06 / Expert advice
How to prepare in advance
Decide whether the home will be your main residence: this decides 5% or 19% VAT. Prepare the €300,000 transfer from abroad and a Cyprus tax number for the contract.
What we do for you. We shortlist new homes from developers that meet the PR criteria, confirm the first sale and calculate VAT.
Igor VentsHead of real estate, Title Deed and property checks
07 / Questions
Frequently asked questions
A developer selling a new home for the first time.
Option A criteria count only housing bought from a developer as a first sale.
Yes, up to two, and the developers may differ.
No, the threshold is €300,000 excluding VAT.
Yes. At filing you need €300,000 paid and a deposited contract.
No, there is no transfer fee on a sale with VAT.
Cyprus PR glossary
- Cyprus PR programme →
- Cyprus PR
- ARC (Cyprus alien registration)
- Form MIP2
- Cyprus residence card
- 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
- Foreign buyer permit (Cap. 109)
- Planning permit
- Building permit
- Certificate of final approval
- Division permit
- 18-month new building rule
- Commercial property for Cyprus PR
- Short-term rental licence
- 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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