When a company makes sense
Buying land through a company can suit investors who plan to sell the finished homes as a business, who invest across several projects, or who want to separate the investment from their personal assets. Buying personally can suit investors who plan to keep homes for their own use. The right answer depends on your residence, your plans and your home country's rules.
VAT on land
Since January 2018, buildable land sold in the course of business in Cyprus has carried 19% VAT. Agricultural land, protected land and land outside development zones are exempt, and private individuals selling outside a business are generally outside VAT.
A VAT-registered company that sells new homes before their first occupation makes taxable sales, so in principle it can recover the VAT it paid on the land and the construction. Bought personally, that VAT is usually a cost.
From 1 September 2026, a home counts as new for VAT until it has been lived in, used or let for 18 months, so letting homes before selling them can change the VAT position. Your adviser must confirm recovery for your structure.
Company tax from 2026
| Item | 2026 |
|---|---|
| Corporate tax | 15% (was 12.5%) |
| Dividends to Cyprus-domiciled individuals | 5% Special Defence Contribution (was 17%) |
| Dividends to non-domiciled individuals | Exempt from Special Defence Contribution |
| Deemed dividend distribution | Abolished for profits from 2026 |
| Benefits treated as disguised dividends | 10% |
| Tax losses | Carried forward for 7 years |
Profits made up to the end of 2025 remain under the old deemed-dividend rules. Selling shares in a company whose value comes 20% or more from Cyprus property now falls within capital gains tax.
Non-EU control
A company is treated as a non-EU buyer for property-purchase permission if non-EU persons own or control half or more of it. British-owned companies are therefore in the same position as British individuals since Brexit.
Questions
Can I reclaim VAT on land in Cyprus?
A VAT-registered company that sells the new homes as a business can generally recover VAT on the land and construction. Buying personally, it is usually a cost. Your tax adviser must confirm it for your structure.
What is the corporate tax rate in Cyprus in 2026?
15%, up from 12.5% before the 2026 reform.
Sources
- EY: Cypriot guidance on VAT on immovable property (Jan 2018)
- PwC Worldwide Tax Summaries: Cyprus, other taxes (reviewed Aug 2026)
- KPMG Cyprus: Indirect tax update (Mar 2026)
- EY: Cyprus enacts major tax reform legislation (Jan 2026)
- AGP Law: Cyprus tax reform 2026, a legal analysis (Jan 2026)
- Cyprus Mail: Cyprus tax reform 2026, what companies still get wrong (Aug 2026)
- C. Markou & Co: 2026 tax reform, key changes for property owners (Feb 2026)
