When purchasing residential property in Cyprus, VAT plays a key role in the final cost. While the standard rate is 19%, buyers may qualify for a reduced 5% rate under specific conditions, creating significant savings.
Currently, properties with planning permits submitted before October 2023 fall under the previous VAT legislation. This allows buyers to benefit from 5% VAT on the full purchase amount, with no restrictions on property size or value. As a result, larger and higher-value apartments can be acquired under far more favorable conditions than will soon be available.
Vizus developments such as Park Azure Residence and Sakura Residence fall under this category. Both projects qualify for the old VAT rule, allowing buyers to secure property with 5% VAT applied to the entire purchase price.
This opportunity, however, is limited. The current legislation remains valid only until June 2026. After that, new VAT rules will apply, restricting the 5% rate to properties up to 130 sq.m. and €475,000, with any excess taxed at 19%.
