Buying Costs in Cyprus: VAT, Transfer Fees and Stamp Duty
What it really costs to buy property in Cyprus — VAT, Land Registry transfer fees, stamp duty and legal fees explained, with a worked example.
The price on the listing is not the full cost of buying property in Cyprus. Depending on the property, you will pay either VAT or Land Registry transfer fees — plus stamp duty and legal fees.
The good news: the rules are clear, and with the right structure the extra costs are often lower than buyers expect. Here is how each one works.
Quick summary: new-build homes usually carry VAT and no transfer fees; resale homes carry transfer fees and no VAT. Stamp duty and legal fees apply to both.
VAT on new-build properties
The first sale of a new property is generally subject to VAT at the standard rate of 19%.
A reduced rate of 5% can apply when the home will be your main and permanent residence. Under the rules introduced in 2023, the reduced rate generally covers the first 130 m² of a home of up to 190 m², where the total value of the purchase does not exceed €475,000 — with the 5% applying to the first €350,000. Conditions apply and you have to apply for it, so ask your lawyer to confirm whether you qualify.
Resale (second-hand) properties are normally not subject to VAT.
Land Registry transfer fees
Transfer fees are paid when the title deed is transferred into your name. They are calculated on the property's value, in bands:
| Property value | Transfer fee |
|---|---|
| Up to €85,000 | 3% |
| €85,001 – €170,000 | 5% |
| Above €170,000 | 8% |
Two rules make a big difference:
- No transfer fees are due when VAT was paid on the purchase.
- When no VAT applies — for example on most resale homes — transfer fees are reduced by 50%.
If a couple buys jointly, the fees are calculated on each person's share, which moves more of the value into the lower bands.
Stamp duty
Stamp duty is paid on the sales contract, normally within 30 days of signing:
- 0.15% on the first €170,000
- 0.20% on the amount above €170,000
- capped at €20,000
Legal fees
Fees for an independent lawyer are typically around 1% of the price, depending on the property and the work involved. It is money well spent: your lawyer is the one checking the title, the permits and the contract.
Worked example: a €250,000 resale apartment
| Cost | One buyer | Couple (50/50) |
|---|---|---|
| Transfer fees (after the 50% reduction) | €6,600 | €4,550 |
| Stamp duty | €415 | €415 |
| Legal fees (approx. 1%) | €2,500 | €2,500 |
| Total extra costs | ≈ €9,515 | ≈ €7,465 |
That is roughly 3–4% on top of the price. For a new-build at the same price, you would pay VAT instead (5% or 19%, depending on eligibility), plus stamp duty and legal fees — but no transfer fees.
Ongoing costs after you buy
- No annual immovable property tax — it was abolished in 2017.
- Small local charges, such as municipal and sewerage fees.
- Common expenses for apartments and complexes (pool, gardens, lifts).
- Utilities and insurance — and, if you rent the property out, management fees and tax on the rental income.
Mortgages and bank costs
If you finance the purchase, budget for bank arrangement fees, a property valuation and insurance. Non-residents can get mortgages in Cyprus, but banks usually ask for a larger deposit.
The bottom line
Ask for a written cost estimate before you reserve a property. As your buyer's advisor, we prepare one for every property we recommend, so you know the full number from day one. New to the process? Start with our step-by-step guide to buying in Cyprus.
This article is general information, not legal or tax advice. Rates and thresholds can change — always confirm the current figures with your lawyer.
