When purchasing property in Cyprus, buyers should be aware of several key taxes and government fees. These include Value Added Tax (VAT), Stamp Duty, Property Transfer Fees, and some ongoing local taxes.
1. Value Added Tax (VAT)
Standard Rate: 19%
Applied to the purchase price of new properties (first sale after construction).Reduced Rate: 5%
Available for buyers who use the property as their main residence, under certain conditions:Applies to the first 130 m² of covered area (or up to 200 m² for planning permits issued before 31 October 2023, if purchase is completed by 15 June 2026).
The property’s value must not exceed €475,000, and the reduced rate applies to the first €350,000.
The total covered area must not exceed 190 m².
Resale Properties:
VAT does not apply to resale (secondary market) properties.
2. Stamp Duty
Stamp duty is payable when registering the sales agreement with the Land Registry.
| Purchase Price Bands (€) | Stamp Duty Rate |
|---|---|
| First €5,000 | 0% |
| €5,001 – €170,000 | 0.15% |
| Over €170,000 | 0.20% (up to €20,000 maximum) |
3. Property Transfer Fees
Transfer fees are paid to the Land Registry when the property title is transferred to your name.
Note: If VAT is paid on the purchase, transfer fees are not applicable.
| Property Value (€) | Transfer Fee Rate |
|---|---|
| Up to €85,000 | 3% |
| €85,001 – €170,000 | 5% |
| Over €170,000 | 8% |
For joint buyers (e.g., spouses), the property value is split, which can reduce the overall fee.
For resale properties (where VAT is not paid), a 50% reduction on transfer fees may apply.
4. Ongoing Local Taxes and Fees
Municipality/Refuse Taxes: Typically €300–€400 per year, depending on location and property size.
Sewerage Tax: €150–€400 per year.
Communal Fees: For properties in complexes, budget €500–€600 per year for a two-bedroom apartment.
5. Summary Table
| Tax/Fee Type | Rate/Amount | Applies To |
|---|---|---|
| VAT | 19% (standard) / 5% (reduced) | New properties (first sale) |
| Stamp Duty | 0.15%–0.20% | All property purchases |
| Transfer Fees | 3%–8% (sliding scale) | Resale properties (no VAT paid). Reduced by 50% for resale properties |
| Municipality Taxes | €300–€400/year | All property owners |
| Sewerage Tax | €150–€400/year | All property owners |
| Communal Fees | €500–€600/year | Apartments in complexes |