The Cost of Buying Property in Cyprus: Taxes and Fees for 2026

Beyond the purchase price, classify the actual transaction for VAT before calculating transfer fees, then add legal fees and other charges. The description “resale” alone does not determine VAT status after the September 2026 first-use change.

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.

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.

Documents executed from 1 January 2026 are outside the repealed stamp-duty regime. A contract signed by at least one party by 31 December 2025 remains subject to the earlier rules, even if another party signs later. Check the actual signature dates.

Transfer fees are assessed by the Department of Lands and Surveys on transfer of title using its assessed market value and progressive bands. The statutory 50% reduction generally applies where the transaction is not subject to VAT. The transfer is exempt from these fees where the transaction is subject to VAT; confirm the classification instead of relying on “new build” or “resale” labels.

The 50% reduction has a specific statutory exception: when the seller acquired the property through the real-estate sale procedure under Parts VI or VIA of Law 9/1965, transfer fees are charged without that discount. Ask for the seller’s acquisition history before relying on a halved-fee estimate. The Department of Lands and Surveys sets out this exception and the VAT rule in its sale/transfer guidance.

The tiers apply progressively across value bands, not as a single flat rate on the whole price.

For the same taxable transaction, VAT means the transfer is exempt from transfer fees. If the transaction is not subject to VAT, transfer fees generally apply with the statutory 50% reduction. A later sale can still attract VAT before the building has completed 18 months of systematic first use.

Calculate both cases against the property’s documented first-use and VAT status. The example below assumes a VAT-exempt later sale; it is not a rule for every resale.

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. A later sale may still be taxable before 18 months of systematic first use have been completed.

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.

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.

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.

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.

A few decisions materially affect the final bill. None involves cutting corners on legal protection — the opposite, in fact.