Updated
GL-P-07
Glossary · Cyprus PR
Planning permit in Cyprus - the first permit of a project
The first permit for a building project: what may be built on the plot and at what density
01 / In 30 seconds
The short answer
- What it is
- The first permit for a building project: what may be built on the plot and at what density
- Who obtains it
- The developer or the plot owner
- What we check
- That the permit exists and the project matches it
- Why it matters to a buyer
- Its filing date decides whether the old 5% VAT rules can apply
02 / In plain words
What Planning permit means
A planning permit (Πολεοδομική Άδεια in Greek) is the first permit that starts any building project in Cyprus. It sets the use of the building and the permitted density on the plot.
Without a planning permit there is no building permit, and without the whole chain of permits a new build will not get separate title deeds. That is why the buyer's lawyer checks it among the first project documents.
For a buyer of a new home the date of this permit also matters for VAT. If the planning permit was filed or issued before 31.10.2023, the old rules can apply: 5% on the first 200 m² with no price or area caps. Applications under the old rules are accepted until 31.12.2026 if the building permit was issued after 01.01.2025 or has not been issued yet (Law 109(I)/2026). From 01.01.2027 only the new rules apply.
A simple example
A client chooses a flat as a main home. The project's planning permit was filed in 2022 and the building permit issued in 2025. So the old rules apply: 5% on the first 200 m², and we file the application before 31.12.2026.
When the planning permit matters
- Checking a new build before a deposit
- Working out VAT: 19% or 5%
- Comparing developer projects
- Assessing the risk of a delayed title
- Buying a plot for your own house
03 / What it covers
Key facts about the planning permit
What it sets
- Use of the building
- Building density
- Project conditions
Who obtains it
- Developer
- Plot owner
- Their architect
For VAT
- Filed by 31.10.2023
- 5% on the first 200 m²
- Apply by 31.12.2026
What comes next
- Building permit
- Certificate of final approval
- Plot division
04 / How it works
Where the planning permit sits in the chain
Planning permit
Use and density of the project.
Building permit
Construction to approved drawings.
Construction
The developer builds.
Final approval
Confirms the building matches the permit.
Division and titles
Separate title deeds for the flats.
05 / Key facts
What matters
01What it is
The first permit
The project starts with it. Without it there is no building permit or anything further down the chain.
02Old VAT rules
5% on 200 m²
If the permit was filed or issued before 31.10.2023, 5% applies to the first 200 m² with no price or area caps.
03Deadline
By 31.12.2026
Only if the building permit was issued after 01.01.2025 or not yet issued. If it was issued by 31.12.2024, the 15.06.2026 deadline has passed.
04How we check
Through a lawyer
The lawyer asks the developer for the permit number and date and checks the project against it.
Common mistakes
Relying on the old 5% on the seller's word
Eligibility depends on the planning and building permit dates. The lawyer checks both.
Postponing an old-rules purchase to 2027
From 01.01.2027 only the new rules apply. Old-rules applications close on 31.12.2026.
Buying without checking permits
Without the chain of permits no separate titles are issued. We check it before any deposit.
06 / Expert advice
How to prepare in advance
Ask the developer for the numbers and dates of the planning and building permits. If you want 5% VAT as your main home, decide this before signing the contract.
What we do for you. We check the project permits before any deposit and work out which VAT you will pay: 19% or 5%.
Igor VentsHead of real estate, Title Deed and property checks
07 / Questions
Frequently asked questions
The first permit for a project: building use and density.
The developer or the plot owner.
If it was filed before 31.10.2023, the old 5% VAT rules on the first 200 m² can apply.
Applications are accepted until 31.12.2026 if the building permit was issued after 01.01.2025 or not yet issued.
From 01.01.2027 only the new 5% VAT rules apply.
The lawyer asks the developer for the number and date and checks them against the project documents.
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