Housing support and reduced VAT are separate eligibility processes.
Some purchasers acquiring a main and permanent residence in Trimiklini may be eligible for government housing assistance and/or the reduced 5% VAT rate. Each scheme has its own criteria, application process and competent authority.
Housing Scheme 2026-2027.
The current government scheme supports eligible acquisition of a home for permanent owner-occupation in qualifying mountainous, near-buffer-zone and disadvantaged areas.
Potential assistance for eligible purchasers
The Ministry of Interior states that assistance is calculated at 50% of eligible acquisition expenditure, with a minimum total eligible expenditure of €20,000. Maximum assistance depends on household composition and the applicable area.
Important: Permanent owner-occupation, income, household composition and other conditions apply. The official scheme guide and competent authority determine eligibility and the amount of any assistance.
Potential reduced VAT at 5%.
The Cyprus Tax Department provides a reduced 5% VAT process for eligible individuals purchasing or constructing a primary residence, subject to the legislation, limits and conditions in force at the time of application.
The reduced VAT regime is separate from the mountainous-area housing scheme.
Main and permanent residence
Buyers should confirm their own position directly with the Cyprus Tax Department and their legal or tax advisers before relying on the reduced rate.