This guide is written for landlords, estate agents and property investors. Rules change regularly and individual circumstances vary, so speak to a Tsquared accountant before acting. We regularly help clients with rental income tax and special defence contribution, capital gains tax on disposals, vat on new builds vs. resales.
Key points
- Reduced rate applies to the first 130 m² of a main home
- Resales of used property are generally VAT-exempt
- Land development may trigger VAT
- Apply for the reduced rate before completion
Challenges you face, solutions we provide
Challenge: Rental income tax and Special Defence Contribution
Our solution: Rental accounts prepared and annual TD1 returns filed with every allowance claimed
Challenge: Capital gains tax on disposals
Our solution: CGT computations with inflation indexation and lifetime exemptions applied before you sell
Challenge: VAT on new builds vs. resales
Our solution: Correct VAT treatment confirmed before completion, including the 5% reduced rate
Challenge: Short-let (Airbnb) reporting
Our solution: Tourism registration, platform income tracking and VAT thresholds monitored for you
Challenge: Agency commission accounting
Our solution: Clean commission bookkeeping with client-money reconciliations and VAT returns
Frequently asked questions
- VAT on property purchases: what's the short answer?
- New residential property in Cyprus attracts 19% VAT, with a reduced 5% rate available on qualifying primary residences subject to size and value limits.
- Can Tsquared help with vat on property purchases?
- Yes. We advise landlords, estate agents and property investors in Cyprus on vat on property purchases and handle the filings for you.