Cyprus: Sales Taxes: VAT, GST

Dixcart has over 50 years of experience in assisting and advising individuals with their residency applications

On 24 April 2026, Cyprus extended the transitional regime that lets some buyers claim the 5% VAT rate on a primary residence under the more generous pre-2023 rules. Here is what changed and which deadlines apply.

Purchasing property in Cyprus requires navigating complex legal procedures, regulatory requirements, and due diligence checks that protect both buyers and sellers. Understanding the conveyancing process, from initial contract preparation through title deed transfer, helps international investors and property buyers avoid common pitfalls including undisclosed mortgages, planning irregularities, and delayed title deeds.

Major UK tax changes took effect from April 2025. These include the introduction of a residence‑based tax system replacing the non‑dom regime, changes to capital gains tax reliefs, the treatment of furnished holiday lets as standard property, and the continued freezing of personal allowances and thresholds for the 2025/26 tax year.

Key economic updates and developments reported across Cyprus this week.

In 2026, more business owners from Europe, the UK, Australia, Canada and the Middle East are considering Cyprus as a tax base and are relocating their operations to the island.

Cyprus offers three options for non-EU nationals to acquire residence. Each of these residence routes offer the additional advantage of leading to Cyprus citizenship, as long as the relevant criteria are met.

MECI announces that, within the context of implementing the Action Plan for the modernisation and reorganisation of the DRCIP, the following legislative reforms were published in the Official Gazette of the Republic on 25/07/2025 and 19/09/2025:

A quiet revolution is taking place across the Mediterranean. As 2025 unfolds, discerning high-net-worth individuals from the UK are discovering Cyprus, not as a tax haven in the traditional sense...