EU Accession

After EU accession Cyprus is no longer just another tourist destination offering sandy beaches and fun.  It is becoming the home, work place, business destination, retirement place for more than half a billion people coming from all over Europe.  Furthermore, the government is introducing a 15% VAT on Cyprus property purchases in accordance with the "acquis communautaire".

Until now foreigners were not allowed to buy as much property as they wanted, but were restricted to one house or one plot of land up to 4,000 sq.m.  But now restrictions to foreign buyers have been lifted.

Until now there was a rush to buy Cyprus property before EU accession and VAT introduction.  But freedom of movement after EU, will further increase demand for Cyprus property real estate.  Once restrictions are lifted we will have a new wave of buyers coming here to live, work, invest or retire.  That is millions of people coming to a small island with limited land resources.

Cyprus has a transitional period until 2008 before imposing VAT on land but buyers of houses, apartments etc will have to pay the VAT from 1 May 2005 subject to transitional exemptions.

Many developers will absorb the VAT so it is worth asking if VAT is included or not.