What taxes and fees apply when buying property in Cyprus?
When buying property in Cyprus, the main costs are VAT — 19% on new builds, reduced to 5% on a qualifying first home — and Land Registry transfer fees of 3% to 8% on value, which are waived where VAT has already been paid. Stamp duty was abolished on 1 January 2026, and there has been no annual national property tax since 2017.
Key facts at a glance
- VAT (standard)
- 19% on newly built property
- VAT (first home)
- 5% on first 130 m², price ≤ €350,000 (Law 42(I)/2023)
- Transfer fees
- 3% / 5% / 8% by value band; waived if VAT paid; 50% off resale
- Stamp duty
- €0 — abolished from 1 January 2026
- Annual property tax
- €0 national (abolished 2017); small municipal levies apply
VAT on property in Cyprus — standard and reduced 5%
New residential property carries 19% VAT. If the home will be your main residence, a reduced 5% rate may apply: under Law 42(I)/2023, 5% covers the first 130 m² where the price does not exceed €350,000 (and the total transaction €475,000), for permits issued from June 2023. A transitional scheme applying 5% on up to 200 m² with no price cap, for earlier permits, has been extended to 31 December 2026. Resale properties carry no VAT.
Property transfer fees and the VAT exemption
The Department of Lands and Surveys charges transfer fees on a progressive scale: 3% on the first €85,430 of value, 5% from €85,430 to €170,860, and 8% above that. Where VAT has been paid on the property, transfer fees are waived entirely, so there is no double charge. On resale property a 50% reduction applies. The buyer pays these fees when the title is transferred; the official DLS calculator gives an exact figure.
Abolished taxes: stamp duty and annual property tax
Two costs no longer apply. Stamp duty on sale contracts was abolished from 1 January 2026, so contracts signed from that date are stamp-duty-free (earlier contracts follow the old rules). The annual immovable property tax was abolished back in 2017. Modest municipal levies still apply each year. Legal fees are typically around 1–2% of the price (an indicative market range), and Capital Gains Tax of 20% applies on a future sale, not on purchase.
Related
Browse all Real Estate & Property FAQsBuying Property in Cyprus: a foreigner's legal guideAll Cyprus law FAQsHarris Koufettas
Managing Partner · Cyprus Bar R.N.4466 · Harris Koufettas & Associates LLC (R.N.655)
View profile →Buying property in Cyprus?
Talk to Harris Koufettas about due diligence, contracts and the tax position before you sign.