First-time home buyers, can benefit of a reduced VAT of 5% (instead of 19% which otherwise applies) for the first 200m² of newly constructed residential properties to be used as their permanent residence.

A draft bill has recently been submitted to the Cyprus Parliament which, if approved, will introduce limits to the scope of application of the reduced VAT coefficient: the reduced VAT of 5% will apply for the first 170m² of houses which have a total area of up to 220m² and with a total value which does not exceed €350,000 and to the first 90m² of apartments which have a total area of up to 110m² and a total value which does not exceed €200,000.

Should you wish to find out more, contact our team at info@paraschou.com.cy.