Accounting & Tax Blog

5% VAT Reduced Rate Cyprus Property 2026: Which Regime Applies to You? If you are buying or building your primary residence in Cyprus, the 5% VAT reduced rate Cyprus property 2026 is still available but the rules depend entirely on when your applied for a planning permit or when it was obtained. The Cyprus Tax Department clarified on 4 May 2026 that there are now two distinct regimes, each with different coverage limits and deadlines. Regime 1 - Previous Rules: 5% on First 20