Cyprus: Reduced VAT rate on supply or construction of new dwelling
A conditional extension for applying the reduced VAT rate on the first 200 m² of a primary residence.
The Cyprus tax department on May 4, 2026, announced a conditional extension for applying the reduced VAT rate on the first 200 m² of a primary residence. This applies to individuals who submitted a town planning permit application by October 31, 2023.
The deadline to file the VAT application was extended from June 15, 2026, to December 31, 2026, provided the building permit was issued after January 1, 2025, or has not yet been issued. However, if the building permit was issued by December 31, 2024, the original filing deadline of June 15, 2026, remains in effect.
Read a May 2026 report prepared by the KPMG member firm in Cyprus