How do reduced-VAT rules work for a first home in Cyprus?

Cyprus offers a reduced 5% VAT for a buyer’s first primary residence. The 5% rate applies to the first 130 m², provided the dwelling’s value is up to €350,000, the total transaction does not exceed €475,000, and total area does not exceed 190 m².

• Any area above 130 m² is taxed at 19%, and if the home exceeds 190 m² or the value limits, the full purchase is taxed at 19%.
• Buyers apply through their lawyer to the Tax Department and must live in the home.
• Persons with disabilities get 5% on the first 190 m². This supports Cyprus properties.