Cyprus: Amendments to VAT laws addressing real property

Effective September 1, 2026

The Council of Ministers issued decrees amending Schedules 5 and 8 of the Value Added Tax (VAT) Law (95(I)/2000), which address the VAT treatment of the supply of buildings and the application of reduced VAT rate for residential property, including the supply and construction of dwellings.

Amendment to Schedule 8 – Supply of buildings: Revises the provisions determining when the transfer of buildings or parts thereof is subject to VAT
Amendment to Schedule 5 – Reduced VAT rate for residential property: Introduces harmonized definitions that directly affect the application of reduced VAT rate to residential property

Both decrees will become effective on September 1, 2026.

Read a March 2026 report prepared by the KPMG member firm in Cyprus

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Cyprus: Amendments to VAT laws addressing real property

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