The proposal was that first-time buyers, whose residences are less than 275m2, will pay VAT at the rate of 5% for first 200 m2 and 15% for the rest.
To be entitled to the VAT exemptions on Cyprus Property Purchases:
The purchased should be at least 18 years of age and must be an EU citizen and must be permanently residing in Cyprus.
The purchased must live in the property for 10 years. If not you will be required to refund the part of the VAT. The purchased must use the property for no less than 183 days per year, proving the property is your permanent residence with water, electricity and telephone invoices.