Cyprus Value Added Tax 2025

Value Added Tax (VAT):

• Standard Rate: The standard VAT rate in Cyprus is 19%.
• Reduced Rates: There are reduced VAT rates.
  It's essential to verify the specific reduced rates and the goods and services they apply to with the appropriate tax authorities, as these can change.
  
• Zero Rate: Certain goods and services are zero-rated (effectively exempt from VAT).
  The specific goods and services that qualify for the zero rate should be confirmed with the tax authorities.
• VAT Exemptions: Some services are exempt from VAT, including (but not limited to) insurance, financial services, most medical services, education, and welfare services. The specific services that are exempt should be confirmed with the tax authorities.
• VAT Registration: VAT registration is compulsory when the annual turnover exceeds a certain threshold.
  The specific threshold (such as the EUR 15,600 you mentioned) should be confirmed with the tax authorities.
• Filing and Payment: VAT returns are typically filed on a quarterly basis.
  The exact filing deadline should be confirmed with the tax authorities.
• Exports: Exports are generally exempt from VAT.

Inheritance and Gift Tax:

• Inheritance Tax: Inheritance tax (estate duty) was abolished in Cyprus.
• Gift Tax: There is no tax on gifts in Cyprus.

Real Estate Transfer Tax:

• Rate: The transfer tax on real estate transactions is levied on the transfer of real estate. The specific rate (such as the 3%-8% you mentioned) and any applicable exemptions or limitations should be confirmed with the tax authorities, as these can vary.

Key Updates and Considerations:

• Tax Laws are Subject to Change: Cyprus tax laws and regulations are subject to frequent updates and amendments. It is crucial to verify the latest information with a qualified tax advisor or by consulting official Cyprus tax sources.
• Professional Advice: Tax regulations in Cyprus can be complex. It is highly recommended to seek professional advice from a tax specialist experienced in Cyprus tax law for specific guidance on your situation.