What is the VAT rate for Land in Cyprus?

Agricultural / Commercial Land

- If the sale involves agricultural land the VAT rate is 0%.

- If the sale involves commercial land the VAT rate is 19%.

Residential Land

- If a company sells residential land then the VAT rate is 19%.

- If a private individual sells residential land then the VAT rate is 0%/19%.
If the seller is a private individual selling residential land in Cyprus and has not sold any property in Cyprus over their lifetime or in the past 10+ years, the applicable VAT rate may be 0%. If the seller has sold another property in the last 10+ years, the VAT rate might be 19%.

*Further Information for Acquiring land for building a permanent residence:
When the buyer is an individual, and the residential land for sale is subject to a 19% VAT, and the land is less than 1,500m2 with the purpose of building their own permanent residence, although the VAT payable is 19% in advance in this scenario, the buyer might, however, claim back the 14% VAT once they build their main residence on the land (subject to further conditions) and use it for 6 months. This reclaimable amount represents the difference between the standard VAT rate of 19% and the reduced VAT rate of 5%.

*Disposal of shares of a company that owns the property/land (sole asset companies).
If the sale involves the transfer/sale of shares of a company that owns the property/land, there is no VAT applicable (and no transfer fees either) upon the transfer/sale of shares in a company owning the Cyprus property.

For a comprehensive understanding of this matter, please don't hesitate to reach out to us for more personalized information, as each case is unique. VAT policies and decisions are evaluated by the relevant department on a case-by-case basis; thus, the information provided above is solely for illustrative purposes.