Cyprus Expat Answers

Do foreigners pay VAT when buying property in Cyprus?

Short answer

Foreigners may pay VAT when buying a new property in Cyprus, just like local buyers. Resale properties are generally not subject to VAT, but may involve transfer fees.

Main explanation

The standard VAT rate on new property is usually 19%, but a reduced 5% VAT rate may be available for eligible primary residences.

The reduced rate has conditions and should not be assumed automatically. Whether VAT applies depends more on the property type and use, not simply whether you are foreign.

Practical point

Whether you pay VAT depends more on the property type and use, not simply whether you are foreign.

Useful next step

Confirm VAT treatment in writing before signing or paying a reservation deposit.

Need help with your own situation?

This page gives general information only. Cyprus rules can depend on your residence, income type, documents, timing, and family situation. A personalised check may be useful before making decisions.

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This page is general information only and is not tax, legal, immigration, financial, or investment advice. Cyprus tax rules and contribution rules can change, and your personal situation may be different. Always check with a qualified adviser before making important decisions.