Cyprus Property VAT Calculator
Calculate the VAT on a residential property in Cyprus. VAT depends on the size of the property in m², so enter the price and the buildable area to see how the 5% and 19% rates apply.
How VAT works on residential property in Cyprus
New residential property in Cyprus is subject to VAT. The standard rate is 19%, but a reduced rate of 5% can apply to part of the price when the buyer purchases a newly built home as their primary and permanent residence.
Why the size in m² matters
The reduced rate only covers a fixed amount of floor area. Under the current rules, the first 130 m² are charged at 5% and any area above that is charged at 19%. The price is split in proportion to area, so a larger home ends up with a higher blended (effective) VAT rate.
Worked example: area above 130 m²
A 150 m² home with a net price of €300,000, bought as a main residence under the current rules:
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130 ÷ 150 = 86.67% of the price is at 5%: €260,000 × 5% = €13,000
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The remaining €40,000 is at 19%: €40,000 × 19% = €7,600
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Total VAT = €20,600 (effective rate 6.87%), so the gross price is €320,600
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For comparison, 19% on the whole price would be €57,000
Worked example: price above €350,000
A 120 m² home with a net price of €400,000:
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The whole area is within 130 m², but only the first €350,000 of the price qualifies: €350,000 × 5% = €17,500
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The remaining €50,000 is at 19%: €50,000 × 19% = €9,500
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Total VAT = €27,000 (effective rate 6.75%), so the gross price is €427,000