The Cyprus Parliament has approved an extension of the reduced VAT on first homes, offering additional time to benefit from the incentive.
Under the new legislation, the eligibility period for the 5% VAT rate has been extended until the end of 2026, based on the permit examination timeline.
The reduced rate applies to the first 200 square metres of a primary residence, with any additional area subject to the standard 19% VAT.
The 5% VAT extension provides a valuable opportunity for Cyprus property buyers to secure their first home under more favourable financial conditions.
