How much could you recover?
The refund is calculated on the full purchase price including VAT.
How the VAT refund works
Cyprus treats short-term rental as a VAT-taxable business. That means the 19% VAT you paid to the developer can be recovered — provided the property is managed correctly.
Purchase a new property
The VAT refund applies to new properties purchased with 19% VAT included. The property must be designated as self-catering accommodation.
Register for STR with the CTO
The property must be registered with the Cyprus Deputy Ministry of Tourism as short-term rental accommodation.
VAT registration
The owner or management company must register for VAT with the Cyprus Tax Department within 3 years of the first purchase payment.
Sign a 10-year management agreement
The property must be managed by a licensed company for a minimum of 10 years. This is where Cityzen Stays comes in.
Receive your refund
Once all conditions are met and the application is filed, the Tax Department refunds the full 19% VAT — directly to you.
Key conditions to qualify
Property used exclusively for short-term rentals (max. 3 months per booking)
Managed through a registered company, not by the owner privately
VAT registration completed within 3 years of first payment
10-year management commitment to STR operation
No switch to long-term rental or private use during the 10-year period
If the property is converted to long-term rental or personal use within 10 years, a proportional portion of the refund must be repaid.
Cityzen Stays
Sign with Cityzen Stays. We handle everything.
The conditions for the VAT refund align perfectly with what we do. When you sign a 10-year management contract with Cityzen Stays, we take care of all the bureaucracy and paperwork at no extra cost.
CTO registration and documentation
VAT registration with the Cyprus Tax Department
Ongoing VAT filing and compliance
Coordination with your accountant or tax advisor
Full property management for 10 years
Important note
The VAT refund is subject to Cyprus tax law and individual circumstances. Cityzen Stays coordinates the property management and administrative process, but we recommend working with a licensed Cyprus tax advisor to structure the VAT recovery correctly for your situation.
Ready to claim your VAT refund?
Book a free call. We'll walk you through the full process, assess your property's eligibility and explain exactly what we handle on your behalf.
Book a free consultation