What VAT rate applies to your transaction?
The short answer
Cyprus charges VAT at a standard rate of 19%, with reduced rates of 9%, 5% and 3%. Some supplies are zero-rated, and others, such as most financial services, are exempt. The rate depends on what you supply: use the rate finder below, or see each rate's examples further down. For income tax and corporate tax rates, see tax.com.cy's Cyprus tax rates.
- Standard rate
- 19%
- Reduced rate
- 9%
- Reduced rate
- 5%
- Reduced rate
- 3%
Hotel & Accommodation
Room rental (min. 30 days)
Passenger Transport
Taxis, tourist and intercity buses, domestic ferries
Food & Non-alcoholic Drinks
Most groceries (alcohol and soft drinks are 19%)
Temporary 0%
Bread, milk, coffee, sugar, baby food, fresh meat and fish (to 31 May 2027); children's milk, nappies, fresh fruit and vegetables (to 31 Dec 2027)
Books & Newspapers
Print and electronic
Standard Supplies
Most goods and services
VAT Rates in Cyprus
Exports and intra-EU supplies of goods; temporarily bread, milk, fresh meat and fish, fruit and vegetables
Books, newspapers, disability aids
Food, medicines, renovation of homes
Hotel stays, taxis and intercity buses, restaurant services
All other goods and services
Insurance, financial services, education, healthcare
Zero-Rated vs Exempt
Output VAT
Charge 0%
No VAT charged
Input VAT
Fully reclaimable
Cannot reclaim
Business impact
Input VAT becomes refundable
Input VAT is a cost to business
Key takeaway: Zero-rated is almost always better than exempt for your cash flow, because you reclaim input VAT.
Home Renovation Reduced Rate (5%)
Works that do not meet these conditions are charged at the standard 19% rate.
2026 Update: From 1 September 2026, a home counts as first occupied only once it has been in systematic use for at least 18 months. The 5% rate still needs 3 years from that first occupation. For works after 1 September 2026 confirm both before your contractor applies the 5% rate.
VAT Calculator
Property & VAT
Residential Resale
Second-hand homes; a new home's first sale is taxable
Commercial Property Sale
Standard VAT applies unless exempt
Rental Income
Unless opted for VAT registration
Renovation of Homes
Home 3+ years old, used as a residence
⚠ Property VAT is complex. Timing of sale, option to tax, and supply type all matter. Get professional advice before property transactions.
Selling second-hand goods, vehicles or art? See the VAT margin scheme — pay VAT on profit, not sale price →
Frequently asked questions
Work out the VAT on your own figures
Add or remove VAT at any Cyprus rate, with the rates from our facts table.
Open the VAT calculator →