Currently Vat is charged at 19% on the purchase price of the property and is paid by the buyer.

However, if the applicant buys a house or apartment up to 200 square meters, then Vat is ‘charged’ at 5% or if the area of the house or apartment is up to 275 square meters, then Vat is ‘charged’ at 5% on the first 200 square meters and 19% on the area of the house or apartment exceeding 200 square meters provided:

The applicant uses the property as his main residence for at least 10 years when he visits Cyprus

• The applicant does not rent the property

The applicant gets approval for the Vat 5% rate from the Vat authorities.  When this happens the applicant is reimbursed with the overpayment of Vat (19% – 5%)

Example

• Purchase Price of a house of 250m² for €500.000
• Calculation of Vat payable

200m² x €500.000 x 5% = €20.000

25050m² x €500.000 x 19% = €19.000

250

• Vat Payable

€39.000

Vat is also charged on purchase of land at 19% on the purchase price.