To make home ownership more affordable, first-time buyers can benefit from a reduced 5% VAT rate, provided they meet certain criteria. In Cyprus, property acquisitions are generally subject to VAT at the standard rate of 19%, when VAT is applicable. Requirements for the reduced 5% VAT rateThe key requirements to qualify for the 5% reduced VAT rate are:The property must be brand-new, not a resale. Old VAT rules (pre-June 2023)According to the old rules, the reduction was applicable to the first 200 sq. New VAT rules (post-June 2023)According to the new rules, the reduced rate of 5% VAT applies to:The first 130 sq.