VAT on property
The standard VAT rate is 19%. For a qualifying primary and permanent residence, the reduced 5% rate can apply to the first 130 m² of buildable area up to €350,000, provided the total buildable area does not exceed 190 m² and the total transaction value does not exceed €475,000. If the limits are exceeded, the standard rate may apply to the whole transaction. Special rules apply to persons with disabilities.
From 1 September 2026, the VAT definition of a “new” building changes: a building can remain new until first occupation, which is based on genuine and continuous use for at least 18 months. Time alone no longer automatically removes a property from the new-building VAT rules, so occupancy evidence can be important.
Transfer fees
Land Registry transfer fees use progressive statutory bands of 3% up to €85,000, 5% from €85,001 to €170,000 and 8% above €170,000. Where VAT is charged on the same property transaction, no transfer fee is payable. Where transfer fees do apply, the current rules generally provide a 50% reduction of the calculated fee, subject to the applicable exceptions.
Capital gains when property is sold
Capital Gains Tax is generally 20% on the taxable gain from the disposal of immovable property in Cyprus, after the deductions and exemptions allowed by law. From 1 January 2026, the lifetime exemptions increased to €30,000 for a general property disposal, €50,000 for qualifying agricultural land sold by a farmer and up to €150,000 for a qualifying main residence. The main-residence exemption is subject to conditions, including qualifying owner occupation.
Stamp duty from 2026
Cyprus repealed the Stamp Duty Laws with effect from 1 January 2026. New documents executed from that date are no longer subject to stamp duty. Documents executed on or before 31 December 2025 remain subject to the rules that applied at the time.
Annual and local property-related charges
There is no central government annual Immovable Property Tax; it was abolished from 1 January 2017. Owners can still face local municipality charges, refuse collection, sewerage charges and communal or building-management expenses. The amount varies significantly by property type, location and the facilities of the development.
Rental income and rent payments
From the 2026 tax year, rental income is no longer subject to Special Defence Contribution. Individual landlords may still be liable to income tax according to their circumstances and to the 2.65% General Healthcare System contribution on rent; companies are generally outside the GHS charge on rental income. From 1 July 2026, rent for property in Cyprus must be paid and received through recognised electronic payment methods rather than cash.
Budget for professional and transaction costs
Legal fees, independent valuation fees, mortgage and bank charges, insurance, Land Registry expenses and other administrative costs can arise in addition to tax. For apartments and managed developments, communal expenses should also be reviewed. A transaction-specific cost estimate is safer than relying on a single general percentage.