On 27 February 2026, Cyprus published two Decrees (No. 102/2026 and 103/2026) amending the Cyprus VAT Law, specifically the Fifth and Eighth Schedules, concerning the supply of new immovable properties and the renovation of second-hand immovable properties. The amendments came into effect on 1 September 2026. They introduce new criteria to determine when a building is considered “new” for VAT purposes, which directly affects whether the supply of a building (and the land transferred with it) is subject to VAT at the standard 19% rate or qualifies for exemption. These changes are significant for property developers, construction companies, and investors involved in real estate transactions, as they alter the VAT treatment of property supplies and renovations. Taxpayers must review their ongoing and planned projects to assess the VAT impact under the new rules.
Key Takeaways
- New definition of “new building” for VAT purposes effective 1 September 2026; impacts VAT liability on property supplies and renovations.
- Decrees 102/2026 and 103/2026 amend the Fifth and Eighth Schedules of the VAT Law; taxpayers must apply updated criteria for classification.
- Review project VAT treatment: Property developers and investors should evaluate the VAT implications for current and future projects under the new criteria.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement