property transactions vat regulations

Navigating VAT in Cyprus: A Guide for Property Transactions and Rentals

Navigating VAT in Cyprus for property transactions and rentals involves understanding the standard 19% VAT rate for new property purchases, with the option for firsttime buyers to qualify for a reduced 5% rate on their main residence. Shortterm rental properties are subject to a 9% VAT rate on rental income, with mandatory VAT registration for annual earnings exceeding €15,600.