Cyprus VAT rates
Key figure: Standard VAT rate19%
The standard rate is 19% and applies to every supply that the law does not place in a reduced band.
The reduced rates are 9% for accommodation, restaurants and catering; 5% for foodstuffs, pharmaceuticals and a qualifying first residence; 3% for certain cultural goods and items for disabled persons; 0% for exports and some basic goods such as bread and milk.
Property purchases
A qualifying first residence can carry the 5% rate instead of 19%, within area and value limits. We do not handle property purchases; the property checklist covers what to verify before you sign.
When VAT registration becomes mandatory
Key figure: Threshold in the Registrar’s guidance€15,600
Registration is mandatory once taxable supplies exceed €15,600 in the past twelve months, or when you expect them to exceed it in the next thirty days alone.
Both tests run at the same time. A company that signs one large contract in its first month can cross the forward-looking test before it has any turnover history at all.
The Registrar of Companies gives the same €15,600 in its guidance for newly incorporated companies, so the figure is confirmed by a government page, not only by a tax summary.
Note
No establishment in Cyprus
A business based abroad that makes taxable supplies in Cyprus generally registers without a threshold. We check which rule applies before we quote.
Checked on cy-drcor-after-incorporation
Working out Cyprus VAT
Key figure: Standard VAT rate19%
Multiply the net price by 19% to get the VAT. At the threshold itself, supplies of €15,600 carry €2,964 of VAT and €18,564 gross.
To take VAT out of a gross price, divide it by one plus the rate: €18,564 divided by one plus 19% returns €15,600 net. Reduced-rate supplies use the same formula with their own rate.
Tax number first, VAT number second
Key figure: Company tax number due within60 days
Every Cyprus company must register with the Tax Department and get its tax identification number within 60 days of incorporation. The VAT registration application is filed after that, once the company meets the threshold or trades from abroad.
For a new company the order is fixed: certificate of incorporation, then the tax number, then the VAT application. We can run all three in one engagement.
Moving your tax residency with the company
Key figure: Company tax residencyIndividuals: more than 183 days in Cyprus in the calendar year, or the 60-day rule. Companies: managed and controlled in Cyprus, or (from 1 Jan 2026) incorporated or re-domiciled in Cyprus unless a tax treaty provides otherwise.
From 1 January 2026, a company incorporated in Cyprus is tax resident there unless a tax treaty says otherwise. VAT registration does not follow residency: it depends on where the company makes taxable supplies and on the €15,600 threshold.
An owner who moves to Cyprus and keeps trading through a company abroad does not get a Cyprus VAT number by moving. A new Cyprus company does, once its own supplies pass the threshold.
Who this is not for
Our package files one VAT registration for €400. It is the wrong purchase in these cases.
- You need someone to file periodic VAT returns: returns are not part of this package and are quoted separately.
- You want to reclaim VAT as a private buyer, for example on a home: we register companies, not individuals.
- Your Cyprus company stays well below €15,600 and has no supplies from abroad: registration is not mandatory, and we tell you so before quoting.
- You want the Tax Department’s decision on a date: we answer for a complete application filed within our working time, not for the Tax Department’s pace.