Tax & VAT

You pay one or the other, not both. A new property sold by a developer carries VAT, at the standard 19% or the reduced 5% for a qualifying main residence, and no Land Registry transfer fees are charged on a purchase subject to VAT. A resale whose sale is outside VAT carries transfer fees instead, at half the standard rates. From 1 September 2026, a building sold before it has had 18 months of systematic use counts as new for VAT, whatever its age. Stamp duty on contracts was abolished from 1 January 2026.

An adult who buys or builds a home in Cyprus to live in as their main and permanent residence can apply, whatever their nationality. The 5% rate covers the first 130 m² of buildable area and the first €350,000 of value; above that, 19% applies. If the home exceeds 190 m² or a total value of €475,000, the whole price carries 19%. You must live there for 10 years, or repay the difference for the remaining years. Projects whose planning permit was applied for by 31 October 2023 may still use older rules in limited cases until 31 December 2026.

Transfer fees are 3% of the value up to €85,000, 5% from €85,001 to €170,000 and 8% above €170,000, and they are halved when the purchase is not subject to VAT. If the purchase carried VAT, no transfer fees are due. The buyer usually pays them to the Department of Lands and Surveys when the title is transferred. When two people buy together, the value is split between them, so each share falls into lower bands. On a €250,000 resale bought by one person, the fees come to €6,600.

Only if it has not yet had 18 months of systematic use. From 1 September 2026, a building counts as new for VAT until its first occupation, meaning at least 18 months of use by the owner, a tenant or anyone else, and a sale before that point carries VAT. After that, the sale is exempt and the buyer pays transfer fees instead. Age no longer matters: an unused building completed years ago now carries VAT. Ask the seller for proof of use, such as leases or utility bills.

No. Cyprus repealed its Stamp Duty Law with effect from 1 January 2026, so property sale contracts and leases signed from that date carry no stamp duty. Contracts signed up to 31 December 2025 remain under the old rules, even if the sale completes in 2026: duty of 0.15–0.20% of the value, capped at €20,000, was due within 30 days of signing, and late payment carries penalties. If you bought in 2025, check that your contract was stamped.

Capital gains tax is 20% of the gain on selling property in Cyprus, after lifetime exemptions that rose on 1 January 2026. The gain is the sale price minus the purchase cost adjusted for inflation and certain costs of buying, improving and selling. Each individual can exempt up to €150,000 of gains on a main residence they have lived in for at least five years, or €30,000 on any other property. These amounts apply once in a lifetime, not per sale, and companies get none. Check your case with a tax adviser.

Rent is taxed as part of your income at the normal income tax rates, and from 1 January 2026 it no longer carries the special defence contribution. An individual landlord deducts 20% of the gross rent, plus capital allowances and interest on a loan used to buy the property, and pays tax on the rest under the personal scale, where the first €22,000 of total income is taxed at 0%. A 2.65% GHS (GESY) contribution still applies to rent. Companies pay 15% corporation tax on rental profit.

No, there is no national annual property tax: the immovable property tax was abolished from 1 January 2017. Owners still pay local charges set by their municipality or community and the local sewerage board, such as refuse collection and sewerage fees, and the amounts vary by area. Any immovable property tax left unpaid for years up to 2016 is still owed. Before you buy, ask the seller for receipts showing that local fees are paid.