Real Estate Purchase Expenses in Cyprus: What Every Buyer Should Know
9 March 2026
Guide to Additional Costs When Purchasing Real Estate in Cyprus
Buying a property in Cyprus is a strategic step towards a high-quality lifestyle or a stable investment. However, to plan your budget effectively, it is crucial to understand that the final price includes more than just the value of the object. Additional taxes and fees can range from 1% to 19%, depending on the property type.
In this guide, we break down the mandatory payments for both new developments and resale properties.
1. VAT (Value Added Tax) — For New Properties
If you are buying a newly built property from a developer, VAT is the most significant additional expense.
- Standard Rate: 19%.
- Reduced Rate: 5%. This applies to the first 130 square meters of a primary residence (up to a total value of €350,000, provided the total area does not exceed 190 sqm).
Note: If you pay VAT, you are exempt from the Property Transfer Fee.
2. Property Transfer Fee — For Resale Properties
When purchasing resale real estate, you do not pay VAT, but you must pay a Transfer Fee to the Land Registry to register the title deed in your name.
| Market Value (in €) | Rate (%) | Accumulated Fee (€) |
|---|---|---|
| Up to 85,000 | 3% | 2,550 |
| 85,001 – 170,000 | 5% | 6,800 |
| Over 170,000 | 8% | Varies |
Need a Precise Calculation?
Taxes and fees in Cyprus depend on many factors: property type, size, and your buyer status. Our experts will prepare an individual cost estimate for any property you choose.
3. Stamp Duty
This is a one-time payment for the legalization of the Sales Contract. It must be paid within 30 days of signing. The rate is approximately 0.15% to 0.20% of the property value.
4. Legal Fees
We strongly recommend hiring an independent lawyer. Typically, legal fees are around 1% of the purchase price (+ 19% VAT on the fee). A lawyer handles due diligence, contract review, and registration with the Land Registry.
Frequently Asked Questions (FAQ)
Is there an annual property tax in Cyprus?
No, the Annual Immovable Property Tax (IPT) was abolished in 2017. Owners only pay minor annual municipality fees for refuse collection and lighting (usually €100–€500 per year).
Can I get a discount on the Transfer Fee?
Currently, there is a 50% discount on Transfer Fees for properties that are not subject to VAT. This is a significant saving for resale property buyers.
How much should I set aside for "hidden" costs?
On average, for a property of €250,000, you should budget approximately 2–3% for a new build (plus VAT) or 5–7% for a resale property to cover all fees and legal support.
Disclaimer: This information is for general guidance only. We recommend consulting with a certified lawyer for legal advice regarding the specific purchase of real estate in Cyprus.
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