Updated
GL-V-04
Glossary · Cyprus PR
VAT on Cyprus property - 19% or 5%
Value added tax charged on the purchase of new property in Cyprus
01 / In 30 seconds
The short answer
- What it is
- Value added tax charged on the purchase of new property in Cyprus
- Rate
- 19% standard, 5% on part of the price of a main home under the law
- When it applies
- When buying a new building, mainly a first sale from a developer
- For PR
- The €300,000 threshold excludes VAT, the tax is paid on top
02 / In plain words
What VAT on Cyprus property means
VAT (in Greek ΦΠΑ) in Cyprus is paid on the purchase of new property - for example, when a developer sells a flat for the first time. It is based on VAT Law 95(I)/2000. The standard rate is 19%, and the reduced 5% rate applies only to part of the price of a main home.
Resale homes usually carry no VAT: instead the buyer pays transfer fees at the Department of Lands and Surveys. The reverse is also true - if VAT was paid on the deal, there are no transfer fees. From 01.09.2026 a building that has not been in systematic use for 18 months counts as new and is charged 19% VAT.
For PR through a home purchase, the €300,000 threshold excludes VAT: the tax is paid on top. On a €300,000 flat at 19% that is €57,000. The 5% rate is only possible if the property becomes your main home, so buyers who get PR without moving usually pay 19%.
A simple example
A client buys a new €300,000 flat for PR and does not plan to live in Cyprus permanently. VAT at 19% is €57,000 and there are no transfer fees. The Migration Department receives receipts for €300,000 excluding VAT.
When you will deal with VAT
- Buying a new build from a developer
- Buying a building under 18 months old
- Working out the full budget for PR
- Applying for the reduced 5% rate
- Paying legal fees (19% VAT)
03 / What it covers
How VAT is calculated
19% on the full price
- New build that is not a main home
- Home for PR without moving
- Commercial property under 18 months old
5% on part of the price
- Main home for 10 years
- Buyer is an individual aged 18+
- Application before handover of keys
No VAT
- Building in use for 18 months or more
- Transfer fees instead of VAT
- Fees of 3/5/8% with a 50% discount
Not part of €300,000
- The VAT itself
- Fees and charges
- Legal fees
04 / How it works
How VAT moves through the deal
VAT regime
The lawyer sets it: 19%, 5% or transfer fees instead.
Contract
Price and VAT are set in the developer contract.
5% application
For a main home - a declaration via Tax For All before the keys.
Payment
VAT is paid on developer invoices on top of the price.
Transfer
With VAT, transfer fees are €0.
05 / Key facts
What matters
01Standard rate
19%
New build, a home not used as a permanent residence, commercial property under 18 months old. On €300,000 that is €57,000.
02Main home
5% on part
The first 130 m² within €350,000, the rest at 19%. A price above €475,000 or an area over 190 m² means 19% on the full price.
03Resale
No VAT
Transfer fees of 3/5/8% with a 50% discount apply instead. No transfer fees when VAT is paid.
04For PR
On top of the threshold
The Migration Department counts €300,000 excluding VAT. The tax is a separate budget line.
Common mistakes
Including VAT in the €300,000
The PR threshold excludes VAT. A €300,000 flat at 19% costs €357,000.
Counting on 5% when buying for PR without moving
The relief is only for a main home for 10 years. Such a property cannot be rented out.
Assuming resale is always VAT-free
From 01.09.2026 a building without 18 months of use counts as new - 19% VAT.
06 / Expert advice
How to prepare in advance
Before reserving, tell us whether you will live in the flat permanently or are buying it for PR and rental: this decides between 19% and 5% and the whole budget.
What we do for you. We set the VAT regime before you reserve, work out the full budget of the deal and prepare the 5% application if the home will be your main residence.
Dmitry NagyTax consultant, international taxation and compliance (ex-Big4)
07 / Questions
Frequently asked questions
19% on new property. 5% on part of the price of a main home under the law.
No. The threshold excludes VAT, the tax is paid on top.
Usually not, transfer fees are paid instead. But a building without 18 months of use counts as new.
Only if the flat will be your main home for 10 years and you do not rent it out.
No. With VAT, transfer fees are €0.
Yes, legal fees carry 19% VAT.
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
- Foreign buyer permit (Cap. 109)
- Planning permit
- Building permit
- Certificate of final approval
- Division permit
- First sale from a developer
- Resale property in Cyprus
- Commercial property for Cyprus PR
- Short-term rental licence
- 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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