Changes in VAT for Housing in Cyprus
May 4, 2026
The 2023 law change regarding VAT in Cyprus has affected property buyers. Cypriots have shifted to smaller homes due to high construction costs. The new law imposes 5% VAT only on the first 130 sq.m, instead of 200 sq.m. as it was previously. However, there are transitional provisions that allow buyers to benefit from the old regulations until 2026. Overall, many taxpayers continue to save through the previous legislation.