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As detached houses and properties in Paphos become increasingly unaffordable, Larnaca and Nicosia remain Cyprus’s main strongholds of affordable housing and steady buyer demand.
Cyprus has lost more than €1 billion in tax revenue due to the reduced 5% VAT rate, which was widely used by buyers of luxury villas rather than the families it was intended to support. Under pressure from Brussels, the Cypriot authorities have set a firm deadline: 31 December 2026 will be the final day to purchase property under the previous, highly favourable VAT rules.
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