Which properties qualify for Cyprus residency? The €300,000 + VAT rule in practice
New or resale? One home or two? What has to be paid before you apply? A practical guide to choosing a property that meets the residency rules.
New residential towers in Limassol. Photo: Andreas Johansson / Unsplash
The residential route to Cyprus permanent residency sounds simple: invest at least €300,000 plus VAT in a home. In practice, the details decide whether your purchase qualifies. Here is what to check before you sign.
New from a developer – not resale
On the residential route the property must be new and bought directly from a land development company. A resale apartment bought from a private owner does not qualify on this route, even if it costs more than €300,000. Other investment routes exist, such as commercial property, shares in a Cyprus company with real activity or units in a regulated fund. They have their own conditions.
One home or two
You can reach the threshold with one home or with two new homes from the same developer, as long as the total is at least €300,000 excluding VAT. Two smaller apartments can be a good fit if you want rental income from one while you use the other.
The price excludes VAT – but you still pay it
The €300,000 is measured before VAT. New homes in Cyprus normally carry 19% VAT. The reduced 5% rate applies only to a qualifying primary residence, within size and price limits, so budget for VAT on top of the price.
What must be paid before you apply
At least €300,000 (excluding VAT) must be paid by the time you submit the application, whatever the delivery date of the property. You do not need to wait for completion, so an off-plan purchase can work. The payments must come from abroad, not from a Cyprus bank loan. Keep every bank transfer record.
The contract must be on record
Your application needs either the title deed or a sale contract deposited at the Land Registry (Department of Lands and Surveys). Your lawyer deposits the contract after signing. This also protects you as a buyer until the title deed is issued.
Checklist before you sign
- The property is new and the seller is a development company.
- The price is at least €300,000 excluding VAT, and VAT is budgeted.
- The payment schedule lets you pay €300,000 before you apply.
- The funds will be transferred from abroad, with full records.
- Your own lawyer has checked permits, the land title and any mortgage on the land.
- The contract will be deposited at the Land Registry.
Common mistakes
- Choosing a resale home because it looks like better value.
- Counting VAT towards the €300,000.
- Paying part of the price with a local mortgage.
- Letting a developer’s schedule delay the €300,000 payment beyond your planned application date.
Keep it, or replace it
Once your permit is granted you must keep the investment. If you later sell, you need to replace it with a qualifying property of equal or higher value.
Because we work with many developers, we can show you new homes at different price points that meet the rule – and payment schedules that match your timeline.
This article is general information, not legal advice. Residency decisions are made by the Republic of Cyprus, and the rules can change. Confirm your purchase with an independent Cyprus lawyer before you sign.