Cyprus · Buying · 4 min
Cyprus: How Much Does a Purchase Cost Beyond the Price?
As of 1 January 2026, stamp duty no longer applies in Cyprus. The main additional cost when buying from a developer is VAT at 19% or 5%; no transfer fee is payable when VAT applies.
Key figures
VAT: the main cost
When buying from a developer, VAT is payable: 19% as a general rule, or 5% on the first 130 m² of a primary residence, subject to price and area limits (PwC Tax Summaries). For an investor who plans to rent out the apartment, 19% is the more realistic estimate. For details, see the article on VAT and rental yield.
VAT is charged on the property price and paid to the developer in instalments according to the contract schedule. If the purchase is paid in instalments, the tax is spread across those payments too, so it should be included in your budget from the first payment, not just at the end.
Property transfer fee
The Land Registry Department charges the transfer fee to the buyer. The rates are progressive (PwC Tax Summaries):
- up to €85 000 - 3%;
- €85 001-170 000 - 5%;
- over €170 000 - 8%;
- no transfer fee applies if the transaction is subject to VAT;
- if VAT does not apply (resale property), the transfer fee is reduced by 50% (Gov.cy).
Example: €300 000
New-build apartment: VAT at 19% - €57 000; transfer fee - 0. Total taxes are approximately €57 000.
Resale apartment with no VAT: the fee comes to €2 550 + €4 250 + €10 400 = €17 200 under the scale, and €8 600 after the 50% reduction. If the purchase is financed with a mortgage, registration of the mortgage adds 1% of the market value (PwC Tax Summaries).
The tax difference between new-build and resale property in this example is approximately €48 400. But you should compare more than just the taxes: a new-build apartment is newer and comes with contractual warranty obligations, while a resale purchase calls for careful checks of title and encumbrances. The final assessment should always be based on two specific properties.
For a primary residence qualifying for the 5% rate, the same €300 000 apartment would incur €15 000 in tax instead of €57 000, provided the entire area is no more than 130 m² and the relief conditions are met.
Stamp duty abolished
Previously, sale and purchase agreements were subject to stamp duty of 0.15-0.2%, capped at €20 000. Law 239(I)/2025 abolished it for documents signed from 1 January 2026 (EY Cyprus). Agreements signed by at least one party before that date remain subject to the previous rules (Harneys).
This represents a direct saving for the buyer: on a €500 000 transaction, stamp duty previously amounted to around €1 000. If a reservation agreement or preliminary document was signed in 2025, ask your lawyer whether the previous rules apply.
Lawyer and contract deposit
Legal fees are not fixed by law and must be agreed separately. Before signing, confirm the fee and scope of work in writing.
One of the main things you pay your lawyer to do is deposit the contract with the District Lands Office within six months of signing. This creates an encumbrance in the buyer's favour and gives the buyer the right to seek transfer of the property through the courts (Legal 500). According to the law firm Kleanthous Platis, late deposit of the contract results in a 10% surcharge on the transfer fee (Kleanthous Platis). For contracts dated from 12 Dec 2023, the seller must attach a registry search dated no more than five working days earlier (GK Law Firm).
Other costs to budget for
Annual expenses - building maintenance fees, utilities, insurance and property management if you rent it out - are not included in the purchase price and vary by property. Ask for estimates before making a reservation.
Non-EU buyers need government permission to register ownership, and the law does not set a deadline for issuing it (Kleanthous Platis). On Cyprus, transfer of title can take months or years, so a deposited contract remains the buyer's main protection in the meantime. It is useful to put the full budget in one table: purchase price, VAT or transfer fee, legal fees, mortgage costs, furniture and the first year of running costs.
This article is for general information only and is not legal or tax advice. The applicable terms should be checked for each specific property before completing a purchase.
What this means for buyers
- When buying from a developer, VAT is the main additional cost; no transfer fee is payable.
- Stamp duty does not apply to contracts signed from 2026.
- Deposit the contract with the Land Registry Department promptly rather than waiting six months.
- Agree the lawyer's fee in writing before signing.
Current as of . This is general information, not legal or tax advice.
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