Deadline for Special Grant for Main Residence - Cyprus

cyprus permanent residence permit

This information note concerns the Amending (No. 2) Law of 2023 which amends the VAT Legislation and was published in the Official Gazette of the Republic of Cyprus on July 14, 2023.

What the amendment is all about

The said amendment concerns the addition of the new Article 64 in Part VI of the VAT Act – Supplementary Provisions. It is noted that on 16 June 2023, the addition of Article 63 was preceded, which concerned the transitional provisions in relation to the new conditions for the application of the reduced rate of 5% for the purchase or construction of a permanent residence.

According to the new Article 64(1), subject to paragraphs (2) and (3) of the same Article, the provisions of paragraphs (2) and (3) of Article 5 of Amendment No. 3 of the 2011 Law are revoked within six months from 14 July 2023, i.e., on 13/1/2024.

Simply put, if someone bought or built a residence before the reduced VAT rate of 5% came into effect on 1/10/21 and was instead eligible for a grant under the Special Grants Act and applied before 1/10/21 the application would be acceptable for special grant purposes. Therefore, purchase agreement or any other agreements executed prior to 1/10/21 will be subject to the special grant until the transaction is completed. No time limits were imposed for applying for the grant.

Based on Article 64 (2), applications for the special grant submitted until 14/7/23 and those up to 13/1/24, will continue to be examined but if submitted after 13/1/24 will not be examined resulting in the non-payment of the special grant.

If the application for the special grant is incomplete and/or information and documents are missing, the applicant is informed, and his application is not considered complete for examination purposes until he submits all the required information. In the case of an incomplete application, the competent authority informs the applicant of the need for correction, who must respond within a deadline set by the competent authority. If the applicant does not comply within the specified deadline, his application is rejected without the right to submit a new application (Section 64(3)).

The persons who have received the special grant must still comply with the conditions set in Article 9 of the Special Grant Law, e.g., use the residence for a period of 10 years (Section 64(4)).


The purpose of the amendment is to set a time limit for the submission of applications for the special grant in relation to the construction or purchase of an eligible main residence.

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