New builds in Paphos with 5% VAT: homes that pass on size and price

Which homes pass

Below is every available home in the catalogue that fits the size and price limits of the relief. For each one: the VAT under the reduced scheme, the VAT at 19% on the whole price, and the difference between them. A home that sells or is reserved drops out of the table by itself: the list is rebuilt from the developer's database every hour.

Prices exclude VAT, as of 1 October 2026. Area is covered area from the developer's database. Calculated under Law 42(I)/2023 and Circular 11/2023. How we check prices.

How the 5% is calculated

The standard VAT rate on a new build is 19%. The reduced 5% works within two thresholds and two caps:

If the area is over 130 m², 5% applies to the share 130/area: of the whole price when it is up to €350,000, and of €350,000 when the price is higher. That is how the Tax Department's Circular 11/2023 does it. For a buyer with a disability and for a large family the area limits differ, as the VAT article explains; the tables on this page follow the general rule. Three homes from the tables, one for each case:

Conditions of the relief

The reduced rate is the buyer's entitlement, not a feature of the home. The table answers whether a home passes on size and price; whether a particular person gets the relief is decided by the Tax Department on their application.

It goes to an individual of any nationality aged 18 or over. The home has to be new and never occupied, bought as the buyer's main and permanent residence in Cyprus, and the buyer must own no other home on the island bought with the relief. You need to live in it for ten years. Sell or let it sooner, and within 30 days you notify the Tax Department and pay back the difference between 19% and 5% in proportion to the time left, counted in calendar months.

The buyer files the claim themselves, through the Tax For All portal. It needs the contract, the home's architectural drawings and copies of the planning application and the planning permit: without those copies the Tax Department does not examine it. The buyer then passes the reduced-rate certificate to the developer, who invoices the payments at the rates on the certificate. The developer holds the drawings and copies of the permits, so ask for them together with the contract.

The area in the tables is the covered area from the developer's database. The law counts the metres from the architectural drawings submitted for the planning permit, and the two figures can differ. The calculation on the documents decides the rate; for a home close to or above 130 m², get it before you reserve.

One older rule applies until 31 December 2026, and not to every development. Where the planning application was lodged by 31 October 2023 and the building permit was issued after 1 January 2025 or has not been issued yet, the Tax Department accepts claims under the older rule until 31 December 2026: 5% on the first 200 m² with no cap on price. Where the building permit was issued by the end of 2024, the deadline to claim passed on 15 June 2026. Whether a particular home falls under it is a question for the contract, and we tell you before you reserve. The figures on this page follow the 2023 rule.

Every rate, the application deadlines and the Tax Department's worked examples are in VAT on new-build property in Cyprus; what else you pay on top of the price is on the cost of buying property in Cyprus.