General information only (not legal or tax advice). Always confirm your exact costs with an independent Cyprus lawyer/tax adviser before signing.
The quick truth: what you’ll actually pay as a buyer
Most Cyprus buyers should budget for three buckets:
- One-off purchase taxes/fees (VAT and/or transfer fees, plus admin)
- Professional costs (legal, survey/engineering, bank fees if financing)
- Ongoing local charges (municipal/sewerage/refuse, etc.)
The biggest driver of cost is simple:
Is the purchase subject to VAT?
- If VAT applies (often new builds) → you may pay VAT (5% or 19%), and transfer fees are generally exempt.
- If VAT does not apply (often resales) → you generally pay transfer fees, but legislation provides a 50% exemption on transfer fees.
1) VAT on property in Cyprus (usually the largest line item)
Standard VAT: 19%
The standard Cyprus VAT rate is commonly referenced as 19%.
This is most relevant for:
- New builds (developer sales), and
- Certain first-time sales / “supply” of new property.
Reduced VAT: 5% for a primary & permanent residence (conditions apply)
Cyprus has a reduced VAT scheme for a primary and permanent residence, but it’s rules-based.
A widely cited summary of the amended rules is:
- Reduced 5% applies to the first 130 m² of a primary residence,
- Up to a value of €350,000 (with additional caps/conditions, including total transaction value and total area limits).
And the Cyprus government provides an official user guide on how to apply for the 5% reduced VAT certificate via its Tax For All portal.
Practical budgeting tip: treat VAT as a “gate” item—confirm early whether your deal is VAT-subject and whether you qualify for the reduced 5% scheme.
2) Transfer fees (Land Registry) — when VAT does NOT apply
Transfer fees are paid when ownership is registered/transferred. The Cyprus government’s own service notes:
- Total exemption from transfer fees when the transfer relates to a transaction subject to VAT, and
- A 50% exemption applies when the transaction is not subject to VAT (noting the government calculator may not apply it automatically).
The usual transfer fee scale (before the 50% exemption)
A commonly used scale referenced in Cyprus buyer guidance is:
- 3% on the first €85,000
- 5% on €85,001–€170,000
- 8% on amounts above €170,000
Important: The Land Registry can assess based on its view of market value (not just the contract price), and there are nuances (joint purchasers, undervaluation, etc.). Treat examples as estimates.
3) Stamp duty in Cyprus — major change from 1 January 2026
If you’ve bought in Cyprus before, you’ve probably heard about stamp duty on the Contract of Sale.
As of 1 January 2026, Cyprus repealed/abolished stamp duty laws, meaning documents submitted to the Registrar of Companies (and generally documents executed on/after that date) no longer require stamp duty.
What this means for buyers:
- If your Contract of Sale is executed on/after 1 Jan 2026, stamp duty is generally not a purchase cost anymore.
- If your contract was executed on/before 31 Dec 2025, the old stamp duty framework may still apply.
4) Legal fees and typical “transaction costs” buyers forget
These aren’t “taxes”, but they’re real buyer costs:
- Lawyer fees (often fixed or a % of price)
- Survey / engineer inspection (highly recommended for older homes, renovations, boundary/condition risks)
- Bank fees (valuation fees, mortgage registration/admin, compliance costs)
- Translation / certification (if foreign buyer / POA)
- Property insurance (often required if mortgaged)
5) Ongoing annual costs (after you own the property)
Cyprus abolished the national annual Immovable Property Tax from 2017, but owners can still pay local charges.
Typical local charges include:
- Municipal/community charges
- Sewerage-related charges
- Refuse/waste charges
(Exact amounts vary by municipality and property profile.)
Example budgets (simple, buyer-friendly)
Scenario A: Resale apartment, €300,000 (no VAT)
Main tax: transfer fees (with 50% exemption)
Using the common scale (3% / 5% / 8%):
- 3% × €85,000 = €2,550
- 5% × €85,000 = €4,250
- 8% × €130,000 = €10,400
Total (before exemption): €17,200
Then apply the 50% exemption noted by gov.cy:
➡️ Estimated transfer fees: ~€8,600
Add: lawyer + survey + bank/admin + local charges.
Scenario B: New build, €300,000 (VAT applies)
If VAT is charged (e.g., standard 19%):
➡️ VAT estimate: €57,000
But: if VAT applies, transfer fees are generally exempt.
Scenario C: New build primary residence (may qualify for 5% VAT)
If you qualify for the reduced VAT scheme, the VAT impact can be much lower—subject to rules around size/value and the application process.
A buyer’s cost checklist
Confirm your “tax pathway”
- ☐ Is the purchase subject to VAT?
- ☐ If yes: do you qualify for reduced 5% VAT (primary residence) and have you started the application?
- ☐ If no VAT: estimate transfer fees and apply the 50% exemption concept.
Budget your other costs
- ☐ Lawyer fees
- ☐ Survey/engineering inspection
- ☐ Bank fees (if mortgage)
- ☐ Translations/certifications/POA (if needed)
- ☐ Utility connection/setup costs
Ongoing ownership costs
- ☐ Municipal/community charges
- ☐ Sewerage charges
- ☐ Refuse/waste charges
How REXE helps buyers avoid cost blowouts
Most cost surprises come from late discovery (VAT eligibility, transfer fee basis, missing paperwork, delays that trigger extra fees).
REXE helps by:
- Keeping one “source of truth” for the deal (so fees don’t get recalculated five times due to missing info)
- Running a single transaction checklist (VAT pathway, Land Registry steps, documents, deadlines)
- Tracking cost-critical milestones (VAT certificate, contract filing, transfer readiness)
