Follow Cyprus immigration and focus on Cyprus real estate trends: Previously, property in Cyprus was subject to a 17% VAT. However, effective January 14, 2013, Cyprus increased its domestic VAT from 17% to 18%. This means that when purchasing property in Cyprus, clients are now required to pay 1% more in VAT than before.
Nevertheless, the preferential VAT refund policy remains in effect, with refund amounts ranging from a minimum of 10% to a maximum of 13%, provided the property value is at least 300,000 Euros. In other words, the actual VAT paid by clients for property purchases remains between 5%—8%, the same as before the policy change.
Due to the small size of Cyprus and limited property supply, Cyprus immigration lawyers predict that property purchase incentives, such as VAT refunds, may be subject to change or termination at any time. Therefore, clients interested in immigration through property investment in Cyprus should act promptly.