24/08/2026
Instagram now allows up to five hashtags per post, so I’ve selected highly relevant, targeted ones. Instagram for Creators
Property VAT has been a major topic this year, and from 1 September, new rules come into effect that could potentially affect hundreds of buyers and sellers.
The key change concerns which property transactions are subject to VAT.
From 1 September, properties sold before their first occupation are subject to VAT — either the standard rate of 19% or, where the relevant conditions are met, the reduced rate of 5%.
So, what does “first occupation” actually mean?
First occupation means the first use of a building after its construction or delivery. This can include owner occupation, own use, rental, or another form of systematic use.
And this is the important part:
For these purposes, first use means systematic use or exploitation of the property for at least 18 months.
This represents a fundamental shift from the previous time-based approach — the five-year rule — to a use-based test based on first occupation.
So, if you are buying or selling a property in Cyprus, don’t simply look at how old the property is.
You need to establish whether it has actually been systematically used for at least 18 months.
A property could be eight years old and still be subject to VAT.
Want to understand the new rules in more detail?
Comment VAT below and I’ll send you the full document.
