Tool · Cyprus VAT
Model the VAT.
Cyprus applies 19% VAT on new-build homes, reduced to 5% on the first 130 m² of a primary residence — capped at €350,000 of value. Any surplus reverts to 19%. We confirm eligibility in writing before contract.
Reduced VAT applies
Value at 5% VAT
€350,000
VAT at 5%
€17,500
Value at 19% VAT
€150,000
VAT at 19%
€28,500
Blended rate
9.20%
Saving vs. standard 19%
−€49,000
Total VAT
€46,000
Gross price incl. VAT
€546,000
Notes
How Cyprus VAT
actually works.
Standard rate — 19%
Applied to all new-build residential property unless the reduced-rate scheme is granted.
Reduced rate — 5%
Available on the first 130 m² of a primary residence, capped at €350,000 of underlying value. Any surplus is taxed at 19%.
Eligibility
You must live in the home yourself and not have claimed the 5% scheme on another property in the last 10 years.
Transfer fees
Land Registry transfer fees are waived on any property where VAT has been paid — a further saving worth 3–8% of value.
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