Cyprus Extends The Transitional Home VAT Route To 31 December 2026 For Qualifying Delayed Projects

A specific extension allows qualifying Cyprus home projects affected by planning-authority delays to use the more generous pre-2023 reduced-VAT rules. The relevant examination window runs to 31 December 2026. The ordinary deadline for the old transitional regime was 15 June 2026; that deadline did not abolish the separate, continuing reduced-rate regime for eligible main and permanent residences.

What the amendment does

The VAT (Amendment) Law of 2026, Law 109(I)/2026, was published in the Official Gazette (Issue 5089) on 24 April 2026. It adds a proviso to article 63 of the VAT Law, the transitional provision introduced in 2023. Under the proviso, the Tax Commissioner may examine applications submitted under article 63 until 31 December 2026 where their examination was not completed in time because of delays by the planning authorities.