Secure 5% VAT on Your Dream Home
If you are considering buying one of the luxury properties for sale at Limassol Greens, urgency should now be a key consideration. The reason being that Cyprus’ highly attractive 5% VAT housing scheme will expire on 15 June 2026. Time is limited, and this deadline presents a rare opportunity for homebuyers and investors to benefit from a significantly reduced VAT rate on new primary residences.
For buyers seeking to combine world‑class lifestyle living with intelligent financial planning, acting swiftly means capturing one of the most valuable incentives currently available on the Cyprus property market.
What the 5% VAT Scheme Means for You
Under Cyprus tax law, the standard VAT rate on new property purchases is 19%, which can materially increase the cost of acquisition. However, a transitional regime allows buyers and developers who submitted a planning permit application between 1 June and 31 October 2023 to continue benefiting from the old 5% VAT rate until June 2026, irrespective of when construction actually completes.
This old scheme is considerably more generous than the current rules that apply elsewhere. Before the reforms, the 5% rate could be applied to the first 200 m² of a property. The reduced VAT not only makes properties more accessible but also improves investment returns by lowering upfront acquisition costs in a significant way.
Why Acting Before June 2026 Matters
The key detail here is the deadline. After 15 June 2026, the transitional provisions that allow the old VAT framework to continue will no longer be available. Buyers who do not secure their application by this date will be subject exclusively to the new VAT rules, which impose stricter conditions on the reduced rate and offer narrower eligibility. For anyone planning to purchase a primary residence, this means:
Act before June 2026 to lock in the 5% VAT rate under the old terms.
Properties completed or contracted after the deadline will be taxed under the new regime without these transitional advantages.
Properties that exceed the new thresholds must pay the full 19% in VAT on amounts above the reduced portion.
The window to benefit from this transitional period is closing fast.
Waiting until after the deadline could see your VAT cost increase materially, making now the critical moment to secure your preferred property.
How This Applies to Limassol Greens’ Buyers
Limassol Greens’ portfolio of luxury properties, from elegant apartments and penthouses to junior villas and signature golfside estates, still presents a compelling proposition for buyers who move quickly. By finalising your purchase and the required VAT declaration before 15 June 2026, you may still secure the advantageous 5% VAT rate under the old scheme*
This is particularly impactful on higher value properties and larger floor plans common in our listings. In a market where margins and taxes matter, a reduced VAT rate can save tens of thousands of euros on purchase cost and strengthen overall investment value.
*subject to eligibility conditions.
Eligibility and Practical Considerations
To benefit from the old 5% VAT scheme, certain criteria must be satisfied, including:
A planning permit application submitted between 1 June and 31 October 2023.
A responsible declaration for the reduced VAT submitted by the buyer or developer and accepted by the Tax Department before the 15 June 2026 deadline.
If these conditions are met, the more generous old framework continues to apply to the transaction, even if construction and completion occur after the deadline. Without timely action, property buyers will be fully subject to Cyprus’s new VAT framework, which is narrower and applies reduced VAT only up to certain sizes and values.
Given the complexity of VAT law and obligations, buyers are strongly encouraged to engage legal and tax professionals early to ensure that their applications and declarations are submitted correctly and on time.
Five Reasons to Act Now
1. Massive Cost Savings
Locking in the 5% rate on VAT can significantly reduce the purchase price compared to the standard rate.
2. Better Investment Returns
Lower acquisition costs mean higher net returns, whether the property is for personal use or long‑term asset growth.
3. Limited Time Window
With the deadline set for mid‑June 2026, there is no guarantee the scheme will be extended; acting now secures the benefit while it lasts.
4. Strong Demand, Limited Supply
Properties at Limassol Greens continue to attract local and international buyers. Acting sooner increases your chance of securing your preferred home.
5. Peace of Mind
Submitting VAT declarations early avoids last‑minute complications and positions you ahead of administrative bottlenecks as the deadline approaches.
Conclusion: The Clock Is Ticking
The 5% VAT housing scheme offers a rare and valuable opportunity for buyers of luxury properties for sale in Limassol, particularly within a development as elevated and future‑oriented as Limassol Greens. With the transitional window closing on the 15th of June 2026, urgency isn’t just recommended, it’s a requirement.
If you have been considering one of our elegant residences, whether a golf side villa, or luxury apartment, now is the time to take the next step. Secure your purchase and the VAT advantage before the deadline, and lock in a financial benefit that could make a significant difference to your investment or lifestyle purchase.
Reach out today to learn how you can move forward before the deadline, and take advantage of one of the most significant property purchase incentives the Cyprus market has offered in years.