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VAT and Taxes When Buying Property in Cyprus

7 min readLast updated April 2026

When buying property in Cyprus, the purchase price is just the starting point. Below is a complete breakdown of every tax and fee you should expect, so there are no surprises at closing.

VAT (Value Added Tax)

19%
Standard Rate

Applies to all new-build properties purchased from a developer. Resale properties between private individuals are VAT-exempt.

5%
Reduced Rate

Available for your first primary residence in Cyprus. Applies to the first 200m² of the property. The remainder is taxed at 19%.

Transfer Fees

Transfer fees are paid to the Department of Lands and Surveys when the title deed is transferred to your name. They are calculated on a progressive scale:

Property ValueRate
Up to €85,0003%
€85,001 – €170,0005%
Above €170,0008%

Important: If you have already paid VAT on the property (i.e. new-build purchased from a developer), you are exempt from transfer fees. This is a significant saving.

Stamp Duty

Stamp duty is paid on the contract of sale and must be submitted to the Tax Department within 30 days of signing.

Contract ValueRate
Up to €5,0000%
€5,001 – €170,0000.15%
Above €170,0000.20%

Maximum stamp duty is capped at €20,000.

Legal Fees

Expect to pay 1–2% of the purchase price in legal fees. A lawyer is essential for any Cyprus property purchase — they handle contract review, due diligence on the title deed, deposit of the contract at the Land Registry, and the transfer process.

Worked Example: €300K New Build (First Home)

ItemAmount
Property price€300,000
VAT (5% reduced rate, first home)€15,000
Transfer fees (exempt — VAT paid)€0
Stamp duty€490
Legal fees (~1%)€3,000
Total~€318,490

Calculate Your True Cost

Use the byprus True Cost Calculator to get a personalized breakdown of all fees and taxes for any property you are considering.

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