Legislative changes will impact how young Cypriot couples are buying property

Marinakis Property Developers is closely monitoring the impact of an existing legislative framework that is expected to reshape the Cypriot real estate market in the coming years. A purchase tax regulation, which applies a 19% VAT on homes exceeding 130 square metres and priced over €350,000, is anticipated to significantly alter the purchasing decisions of young Cypriot couples. (LLPO Law Firm)

In anticipation of this shift, many property developers, including Marinakis Property Developers, are already taking proactive steps to design and develop homes that align with the regulation while maintaining the same high standards of quality, comfort, and aesthetic appeal. These new properties will be carefully crafted to optimise space and lifestyle functionality, ensuring that buyers continue to enjoy the standard of living they expect, even in more compact layouts.

The legislation is projected to take full effect in the second half of 2026, once existing projects that are exempt from the new tax are sold out. With Cypriots traditionally favouring spacious homes, this shift is anticipated to push many buyers towards smaller properties that remain within the €350,000 threshold, where they can continue to benefit from the reduced 5% VAT rate (Cyprus Bar Association).

This change comes amid increasing concerns about housing affordability in Cyprus, particularly for younger generations who are already facing rising construction costs, higher mortgage rates, and economic uncertainty. The tax implications could place additional financial strain on first-time buyers, making it more difficult for them to invest in larger homes that were once considered standard for Cypriot families.

“As a company dedicated to understanding and addressing the evolving needs of homebuyers, we recognise that this change will influence purchasing trends and the types of homes people can afford thus, we are adapting our approach to ensure that we continue to offer high-quality, desirable homes that align with both financial and lifestyle expectations.” said Mr. Antonis Marinou, Chief Operating Officer at Marinakis Property Developers. “

Marinakis Property Developers remains committed to providing innovative housing solutions that cater to the needs of young families and first-time buyers. The company is already strategising new designs and project offerings to accommodate the growing demand for high-quality, affordable homes under the current tax framework.

Additionally, the company is exploring flexible financing options and design innovations to maximise space efficiency in smaller properties, ensuring that buyers can still enjoy comfortable living environments despite the shift in market conditions.

Want to learn more about Marinakis or schedule a private viewing? Reach out to us at (+357) 24629000 or email sales@marinakisproperty.com. Explore our website marinakisproperty.com for the finest real estate opportunities.

Sources:

(LLPO Law Firm, Cyprus Bar Association)