Acquisition of a property in Cyprus is subject to VAT (Value
Added Tax) and the current VAT rate is 19%.
As from 1st of October 2011 a reduced rate of VAT
(5%) shall be applied to dwellings used or intended to be used by a
beneficiary as the principal and permanent place of residence, once
a responsible declaration submitted by the beneficiary is approved
by the VAT Office, according the amending law N. 129(I)/2011 of the
VAT Law of 2000 (N.95(I)/2000).
Furthermore, as of 8th of June 2012, the reduced rate
of VAT shall be extended to dwellings used or intended to be used
by a beneficiary, as a principal and permanent residence in the
Republic and to citizens of countries other than EU Member
States.
