Property Tax & VAT in Cyprus

Summary

• Cyprus has no annual property tax, it was abolished in 2017
• New build buyers pay VAT instead of transfer fees
• The standard VAT rate is 19%, with a reduced rate of 5% for qualifying main residences
• The reduced rate covers the first 130 square metres, on properties up to €350,000 within a total transaction value of €475,000
• Resale buyers pay Land Registry transfer fees of 3% to 8%, with a 50% reduction applied
• Stamp duty on property contracts was abolished from January 2026
• Your main upfront tax is either VAT or transfer fees, never both

Property Tax in Cyprus:

Most buyers expect property tax to follow the same pattern everywhere: an upfront cost when you buy, then an annual bill for as long as you own. Cyprus does things differently. There is no annual property tax at all, and the upfront cost comes down to one simple choice: new build or resale.

Here's how the numbers work, so you can plan with confidence.

No annual property tax

Cyprus abolished its annual immovable property tax in 2017. Whatever you buy and whatever it's worth, there's no yearly property tax bill to budget for. Compared with markets that charge 1% or more of a property's value every year, that's a real advantage over the long term.

New build: VAT, with no transfer fees

Buy a new build from a developer and you pay VAT instead of Land Registry transfer fees. The standard rate is 19%, but a reduced rate of 5% is available to buyers purchasing their main residence. It applies to the first 130 square metres of covered area, on properties priced up to €350,000 within a total transaction value of €475,000. Anything above those limits is charged at the standard rate.

The saving is significant. On a €300,000 purchase, the difference between 5% and 19% is €42,000, so it's well worth confirming your eligibility with your lawyer or the developer before you buy. Because VAT has been paid, there are no transfer fees to add on top.

Resale: Land Registry transfer fees

Resale properties carry no VAT. Instead, the buyer pays transfer fees on a sliding scale: 3% on the first €85,000, 5% on the next €85,000 and 8% above €170,000. A 50% reduction applies to these fees on resale purchases, and where a property is bought in two names, each owner's fee is calculated on their share, bringing the cost down further.

What this means for your budget

With no annual property tax and stamp duty now abolished, buying in Cyprus is refreshingly simple. Your main upfront cost is either VAT or transfer fees, and knowing which applies lets you budget accurately from day one. New build buyers also get modern specification, staged payment plans and no transfer fees at completion. Use the calculator above to see where your purchase lands, then confirm the final figures with a Cyprus tax adviser before you sign.

Frequently asked questions

Is there an annual property tax in Cyprus?

No. Cyprus abolished its annual immovable property tax in 2017, so there's no yearly property tax bill regardless of the value of your property.

Do I pay VAT on a new build in Cyprus?

Yes. New build property bought from a developer is subject to VAT at 19%, or 5% if you qualify for the reduced rate. Because VAT is paid, no transfer fees apply.

Who qualifies for the reduced 5% VAT rate?

Individuals buying a property as their main and permanent residence. The reduced rate applies to the first 130 square metres, where the price is up to €350,000 and the total transaction value is up to €475,000. Anything above those limits is charged at 19%. Companies pay the standard rate.

Can non Cypriot buyers get the reduced VAT rate?

Yes, provided the property will be their main and permanent residence in Cyprus and the other conditions are met. It isn't available for holiday or investment properties.

How do I apply for the reduced VAT rate?

An application is made to the Cyprus Tax Department before you take possession of the property or complete the transfer. Your lawyer will usually handle this for you.

What are transfer fees and when do I pay them?

Transfer fees are paid to the Land Registry when the title deed is transferred into your name. They apply to resale properties where no VAT has been paid, and are charged at 3% on the first €85,000, 5% on the next €85,000 and 8% above €170,000, with a 50% reduction.

Does buying in joint names reduce transfer fees?

Yes. Where a property is bought in two names, each owner's fee is calculated on their share of the value, which keeps more of the price in the lower bands.

Is there stamp duty on property in Cyprus?

Not any more. Stamp duty on property contracts was abolished from 1 January 2026.

Are there any other costs to budget for?

Yes, legal fees, and for resale properties any costs agreed with the seller. Your lawyer will give you a full breakdown of closing costs before you commit.

Do I pay tax when I sell?

Capital gains tax may apply when you sell a property in Cyprus, with allowances available depending on your circumstances. Speak to a Cyprus tax adviser for advice on your position.