The Cost of Buying Property in Cyprus: Taxes and Fees for 2026
Reviewed by Eleni Philippou · Advocate · Cyprus Bar Association · LL.M. (Distinction)Last updated: July 4, 2026
Buying property in Cyprus costs roughly 8–12% of the price on top of the purchase price, though the mix depends on new-build versus resale. New builds carry VAT (5% or 19%) and no transfer fees; resales carry tiered transfer fees of 3%, 5% and 8% (reduced by 50%) and no VAT. Stamp duty was abolished from 1 January 2026, and legal fees run around 1% plus VAT.
Key takeaways
- Budget roughly 8–12% of the price in taxes and fees — more on a new build where VAT applies, less on a resale.
- Transfer fees apply to resales on a tiered scale (3% / 5% / 8%) and are reduced by 50%; they are zero where VAT was paid.
- Stamp duty on contracts was abolished from 1 January 2026 — a cost and a step older guides still list.
- New builds carry VAT at 19%, or 5% on the first 130 m² of a qualifying primary residence — you do not also pay transfer fees.
- Legal fees are about 1% of the price + 19% VAT; small Land Registry and sundry fees also apply.
- Capital gains tax of 20% is a seller’s cost, not a buyer’s — but worth understanding before you resell.
What are the total costs of buying property in Cyprus?
Beyond the purchase price, a Cyprus buyer faces one main transaction tax — either VAT (new build) or transfer fees (resale), never both on the same property — plus legal fees and minor sundries. The single biggest variable is whether the property is a new build or a resale.
The table below summarises the main cost lines for 2026. Exact figures depend on the price, the property type and, for VAT, whether you qualify for the reduced primary-residence rate.
| Cost | New build | Resale |
|---|---|---|
| VAT | 19%, or 5% on first 130 m² of a qualifying primary residence | Not applicable |
| Transfer fees | None (VAT paid) | 3% / 5% / 8% tiers, reduced by 50% |
| Stamp duty | Abolished 1 Jan 2026 | Abolished 1 Jan 2026 |
| Legal fees | ≈ 1% + 19% VAT | ≈ 1% + 19% VAT |
| Land Registry & sundries | Small fixed fees | Small fixed fees |
What changed in 2026? Stamp duty abolished
The headline change is that stamp duty on contracts was abolished with effect from 1 January 2026. Previously a buyer paid stamp duty on the contract of sale (at rates around 0.15%–0.20% above a threshold, capped at €20,000), and the contract had to be stamped before it could be lodged at the Land Registry.
That cost and that step are now gone for contracts from 2026 onward. Many older guides and calculators still include stamp duty — treat those as out of date.
2026 tax-reform context
Stamp-duty abolition is part of the broader 2026 tax reform, which also raised capital-gains-tax exemptions and reshaped rental-income taxation. Where a figure looks different from an older source, check whether it predates 1 January 2026.
How are property transfer fees calculated in Cyprus?
Transfer fees are paid to the Department of Lands and Surveys when title transfers into your name on a resale, calculated on the property’s assessed market value using a tiered scale. A standing 50% reduction applies, and — importantly — no transfer fees are due at all where VAT was paid on a new property.
The tiers apply progressively across value bands, not as a single flat rate on the whole price.
| Property value band | Rate |
|---|---|
| Up to €85,000 | 3% |
| €85,001 – €170,000 | 5% |
| Over €170,000 | 8% |
| Where VAT was paid (new build) | 0% — no transfer fees |
Do I pay both transfer fees and VAT?
No — and this is where buyers routinely double-count. Transfer fees and VAT are mutually exclusive on the same property. A new build sold with VAT attracts no transfer fees; a resale with no VAT attracts transfer fees (halved by the 50% reduction).
So the real cost comparison is VAT on a new build versus reduced transfer fees on a resale — which is why the worked example below matters more than either figure in isolation.
VAT on a new property: 5% or 19%?
New builds carry VAT. The standard rate is 19%, but a reduced 5% rate applies to the first 130 m² of a qualifying primary residence, subject to value and area limits. Resales do not carry VAT.
The reduced rate can dramatically cut the tax on a new home, so eligibility is worth confirming early. The detailed conditions — including the 130 m², €350,000 and €475,000 thresholds and the 10-year primary-residence rule — are covered in the dedicated VAT guide.
Worked example: the total cost of a €300,000 home
The same headline price produces very different tax bills depending on whether the property is a resale or a new build. This is the comparison every buyer should run.
€300,000 resale vs new build
Resale (no VAT): transfer fees are 3% on the first €85,000 (€2,550), 5% on the next €85,000 (€4,250) and 8% on the remaining €130,000 (€10,400) = €17,200 — then halved to about €8,600. Add ≈ €3,000 legal fees + VAT.
New build at 19% VAT: €57,000 VAT and no transfer fees; if it qualifies for the 5% primary-residence rate on the first 130 m², the VAT falls sharply. Add ≈ €3,000 legal fees + VAT.
Takeaway: on a new build VAT dominates, so primary-residence eligibility for 5% is decisive; on a resale, the 50% transfer-fee reduction keeps costs down.
Legal fees and other closing costs
Beyond the main transaction tax, budget for legal fees and a handful of smaller costs. Legal fees for a standard purchase are typically about 1% of the price plus 19% VAT, and independent representation is money well spent given the risks it guards against.
| Item | Typical cost |
|---|---|
| Legal fees | ≈ 1% of price + 19% VAT (floor ~€2,500) |
| Land Registry search & lodging | Small fixed fees |
| Certified translations / apostille | At cost (relevant for foreign buyers) |
| Mortgage costs (if financing) | Valuation, mortgage registration, insurance |
What about capital gains tax when I sell?
Capital gains tax is a seller’s cost, not a buyer’s, but it is worth understanding at the outset. Cyprus charges CGT at 20% on the gain (not the sale price) when you later sell, after deductions and inflation indexation, and with lifetime exemptions that were increased under the 2026 reform.
If you are buying as an investment or expect to resell, factor this in. The full mechanics — rate, exemptions, indexation and the worked calculation — are covered in the capital gains tax guide.
How to keep your buying costs down
A few decisions materially affect the final bill. None involves cutting corners on legal protection — the opposite, in fact.
Cost-saving levers
On a new build, confirm eligibility for the 5% primary-residence VAT rate before signing — it is the single largest saving.
On a resale, remember transfer fees are already halved and there is no VAT.
Get a written fee quote from your lawyer and a clear list of disbursements.
Budget for the tax at the assessed market value, which the Land Registry — not the seller — determines.
Key facts
- Total buyer costs
- ≈ 8–12% of price, depending on new-build vs resale
- Transfer fees (resale)
- 3% / 5% / 8% tiers, reduced by 50%
- Transfer fees (new build, VAT paid)
- None
- VAT (new build)
- 19%, or 5% on first 130 m² of a qualifying primary residence
- Stamp duty
- Abolished from 1 January 2026
- Legal fees
- ≈ 1% of price + 19% VAT
- Capital gains tax (on sale)
- 20% of the gain (seller’s cost)
Frequently asked questions
What are the total costs of buying property in Cyprus in 2026?
Expect roughly 8–12% of the price in taxes and fees on top of the purchase price. The mix depends on the property: new builds carry VAT (19%, or 5% on a qualifying primary residence) and no transfer fees, while resales carry tiered transfer fees (3–8%, halved) and no VAT. Legal fees add about 1% plus VAT.
How are transfer fees calculated in Cyprus?
On a resale, transfer fees are charged on the property’s assessed market value on a tiered scale: 3% up to €85,000, 5% from €85,001 to €170,000, and 8% above €170,000. A standing 50% reduction then halves the total. No transfer fees are payable where VAT was paid on a new property.
Do I pay both VAT and transfer fees?
No. They are mutually exclusive on the same property. A new build sold with VAT attracts no transfer fees, and a resale with no VAT attracts transfer fees (reduced by 50%). Buyers often mistakenly add both, which overstates the real cost.
Is there still stamp duty when buying property in Cyprus?
No. Stamp duty on contracts was abolished with effect from 1 January 2026. Previously it applied at around 0.15%–0.20% above a threshold, capped at €20,000, and the contract had to be stamped before lodging. Older guides and calculators that still include it are out of date.
When does the 5% reduced VAT rate apply?
The 5% rate applies to the first 130 m² of a qualifying primary residence bought new, subject to value and area limits (around €350,000 value and under 190 m²), with a 10-year primary-residence condition. Above the limits, 19% applies. Resales carry no VAT. See the dedicated VAT guide for the full conditions.
How much are legal fees when buying in Cyprus?
Legal fees for a standard purchase are typically about 1% of the price plus 19% VAT, with a common floor near €2,500 for lower-value deals, plus disbursements such as Land Registry search fees and certified translations. Always request a written fee quote and scope before instructing.
Talk to an independent Cyprus property lawyer
Free, no-obligation consultation. We act only for you — never for the developer or estate agent.
Related guides
General legal information, not legal advice, and no lawyer–client relationship is created. Figures are current to the date above and depend on your specific transaction. Speak to a qualified Cyprus advocate before acting.