Our team will be with you every step of the property buying process in Cyprus, assisting you with any queries and offering support through to completion to assure that it will be as simple and as enjoyable as possible
Permission To Buy In Cyprus
Cypriots and EU citizens can buy as much land or property as they wish, without restriction. Non EU citizens have the right to buy property in absolute ownership, while the offshore companies can buy space for their business or for residence of their foreign employees.
Permission to buy property must be sought from the Council of Ministers by written application, submitted by the purchaser after the agreement is signed. This permission is granted more or less as a matter of course to all bona fide purchasers. In the meantime, however, purchasers may take possession of their property without restriction. The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable amount of time after signing the contract of sale.
Cyprus Vat Payable on Property
Since Cyprus’ EU accession in 2004, a standard VAT rate of 19% is required to be paid when buying a new property.
However, following a recent VAT Amendment Law, a reduced VAT rate, starting from 5%, is applicable for the acquisition of new residential properties.
For the reduced rate to be in effect, certain terms and conditions must be met:
- The property must be used as the primary and permanent residence of the applicant (for the next ten years).
- The applicant has not acquired any other residence in Cyprus with a reduced VAT rate.
- The applicant must be an individual, over 18 years old, thus legal entities are excluded.
The reduced VAT rate of 5% is applied on the first 200 square meters (building coefficient) of the property as per the architectural plans submitted to the Authorities. On the remaining square meters, the standard rate of 19% is imposed.
