Recent law has been approved by the Cyprus Parliament imposing a 15 % VAT charge on all new property, provided the initial application for a building permit was made after the 1 May 2004. All buildings that received a building permit prior to this date will have no VAT charge. In addition all second-hand property including houses, apartments and the like have no VAT charge. Building plots and land are also exempt from VAT until 2007.

With the announcement and implementation of VAT on property sales the government announced the 10 % refund on the 15 % total of VAT paid for the purchase of a first house.

The refund is given in the form of a grant as opposed to a VAT refund. This grant is valid and applicable in the following circumstances.

» For properties where the application for town planning license / permit were submitted after 1 May 2004.

» For persons over 18 years of age who are Cypriots or European Citizens and permanently residents in Cyprus.

» Persons that will use the property as a permanent residence and have no other house in Cyprus.

» For houses up to 250m2.

» The beneficiary has to keep the house without transferring it for a period of ten years.

We will however assist you and provide you with all the necessary documentation to claim the grant should you qualify.