Hidden Costs When Buying Real Estate in Cyprus in 2026: What You Need to Know

Acquiring real estate in Cyprus is an important step that requires careful planning. In 2026, the system has become simpler, but there are still many hidden costs that you should be aware of in advance. This article is intended for potential buyers who want to avoid unexpected expenses and better understand what the buying process entails.

Main Expenses When Buying Real Estate

1. VAT

Value Added Tax is one of the most significant expenses when purchasing a new property. In 2026, the following rates apply:

• 5% — if certain conditions are met (for example, if this is your first home)
• 19% — the standard rate for most properties

👉 This is the largest additional expense that needs to be considered in advance.

2. Transfer Fees (secondary market)

These fees apply only when purchasing secondary real estate and amount to approximately 1.5% – 4% of the property value. If you are buying a new property with VAT, these fees do not apply.

👉 Make sure to account for these expenses when planning your budget.

3. Legal Services

Legal services are an important part of the buying process. They usually amount to about 1% + VAT of the property value. A lawyer will help protect your interests and ensure the legality of the transaction.

👉 Don’t skimp on legal services — it can save you money and stress in the future.

4. Bank Fees

If you plan to use a mortgage, you need to consider the following expenses:

• Bank fees
• Property appraisal
• Insurance

👉 These expenses depend on the bank and your financial profile, so it’s worth clarifying all the details in advance.

5. Expenses When Buying New Properties

When purchasing a new property, there may be additional costs that are often overlooked:

• Furniture
• Appliances
• Air conditioning (if not included)
• Landscaping (for villas)

👉 It is especially important to consider these expenses when buying off-plan.

6. Utility Connections and Maintenance

After the transaction is completed, you will need to connect electricity and water, as well as account for annual utility payments and maintenance fees (in complexes).

7. Taxes When Renting Out

If you plan to rent out the property, you should consider:

• Income tax
• GHS contribution

👉 As of 2026, the SDC tax on rent has been abolished, reducing the tax burden on landlords.

What Changed in 2026

In 2026, the following changes occurred that may affect your expenses:

• Abolition of stamp duty
• Simplification of the expense structure
• Reduction of the tax burden on rentals

👉 These changes make buying real estate more advantageous.

Summary

The main expenses when buying real estate in Cyprus include:

• VAT (for new properties)
• Transfer fees (for secondary properties)
• Legal services

Other expenses depend on the type of property and your strategy.

Conclusion

It is important to understand the full picture of expenses in advance to avoid surprises. We offer our clients a complete calculation of all costs before purchase, so you clearly understand your budget.

📩 Contact us for a full cost estimate and property selection.

FAQ

What is the largest hidden cost when buying real estate in Cyprus?

The largest hidden cost is VAT, which is 5% or 19% depending on the purchase conditions.

Do you need to pay Transfer Fees when buying a new property?

No, Transfer Fees do not apply when purchasing a new property with VAT.

What are the costs for legal services?

Legal services usually amount to about 1% + VAT of the property value.

What additional costs may arise when buying a new property?

Additional costs may include furniture, appliances, air conditioning, and landscaping.

How have rental taxes changed in 2026?

As of 2026, the SDC tax on rent has been abolished, reducing the tax burden on landlords.