Reduced rate of VAT 5% announced

The Cypriot Government as from 1 October 2011 has introduced a reduced rate of VAT 5% on every acquisition or construction of new residence provided that the residence will be used as the main residence of the purchaser.

To be entitled to the VAT exemptions on Cyprus Property Purchase:

The purchaser should be at least 18 years of age.

The purchased must live in the property for 10 years. If not you will be required to refund the part of the VAT. The purchaser must  prove the property is his/herpermanent residence with water, electricity and telephone invoices.