Taxes & Costs When Buying Property in Cyprus (2026)

8 February 2026

When buying property in Cyprus, understanding the full tax and cost structure is essential. Beyond the agreed purchase price, buyers should plan for VAT, stamp duty, transfer fees, legal costs, and ongoing ownership expenses to avoid unexpected financial exposure.

This guide explains, in practical terms, the taxes and costs involved when buying property in Cyprus, with a focus on foreign buyers, investors, and relocating purchasers.

How This Guide Fits with Our Cyprus Property Resources

Before reviewing taxes and costs, buyers should first understand the Cyprus property market and locations, followed by the foreign buyer framework.

We recommend reading the following guides first:

Buying Property in Cyprus – Limassol & Paphos Complete Guide
https://propertyincyprus.com/news/article/32/buying-property-in-cyprus---limassol-paphos-complete-guide

A Foreign Buyer’s Guide to Buying Property in Cyprus
https://propertyincyprus.com/news/article/33/a-foreign-buyer%E2%80%99s-guide-to-buying-property-in-cyprus

Together, these guides explain whereto buy and how foreign buyers approach the market.
This article focuses exclusively on what it costs.

VAT on Property Purchases in Cyprus

VAT is typically the largest tax component when buying property in Cyprus.

VAT Rates

• 19% VAT applies to new residential properties by default
• 5% reduced VAT may apply for qualifying primary residences, subject to conditions

Key Points Buyers Should Know

• VAT eligibility depends on use, not nationality
• Reduced VAT applies only within specific size limits
• VAT must be assessed before signing the sale agreement
• Incorrect structuring can permanently remove eligibility

Early VAT planning is critical.

Stamp Duty on the Sale Agreement

Stamp duty is payable on the sale agreement and calculated on the contract value, subject to statutory thresholds.

It is:

• A one-off cost
• Payable shortly after signing
• Required for proper registration at the Land Registry

Stamp duty should always be included in your initial budget.

Property Transfer Fees

Transfer fees may be payable to the Cyprus Land Registry depending on the transaction structure.

Important considerations:

• Often reduced or exempt when VAT is paid
• Typically apply to resale properties
• Calculated based on Land Registry valuation

Your legal advisor will confirm the applicable amount before completion.

Legal & Professional Fees

Buyers should budget for:

• Independent legal representation
• Due diligence and contract review
• Administrative and Land Registry charges

Professional guidance is essential to protect buyer interests and ensure compliance.

Capital Gains Tax on Resale

When selling property in Cyprus, Capital Gains Tax (CGT) may apply.

Key points:

• CGT is calculated on the net gain, not the sale price
• Certain acquisition and improvement costs are deductible
• Indexation relief may apply for older properties
• Primary residence exemptions may apply, subject to conditions

Exit strategy should be considered before purchase, not at resale.

Ongoing Ownership Costs

Cyprus does not impose an annual property ownership tax, which is a major advantage compared to many other jurisdictions.

However, owners should budget for:

• Municipality or community charges
• Building management and common expenses
• Insurance and maintenance
• Utilities and services

These costs vary depending on property type and location.

Rental Income & Tax Considerations

If a property is rented, owners may need to consider:

• Income tax on rental earnings
• Allowable deductions
• Reporting and compliance obligations

Tax treatment depends on ownership structure and the owner’s tax residence.

Common Cost Mistakes Buyers Make

• Budgeting only for the purchase price
• Ignoring VAT eligibility until too late
• Underestimating legal and transfer costs
• Failing to plan resale tax exposure
• Not coordinating legal and tax advice

Most cost issues arise from insufficient early planning.

Final Thoughts

Buying property in Cyprus can be highly rewarding, but cost clarity is essential. Understanding taxes, fees, and ongoing obligations in advance allows buyers to plan confidently and avoid unnecessary expense.

Professional guidance is not an added cost — it is risk control.

Blue Sky Properties

Blue Sky Properties assists buyers throughout the Cyprus property purchasing process, offering guidance on market selection, foreign buyer requirements, and cost awareness.

For personalised advice or a clear cost breakdown before proceeding, the Blue Sky Properties team is available to assist. Just click at https://propertyincyprus.com/c...