Property Taxes in Cyprus: The 2026 Rules

Buying property in Cyprus involves taxes and transaction fees, the structure of which has been reformed. Understanding these rules allows buyers to optimize their transaction budgets.

1. Stamp Duty Abolished

Stamp duty on property sales contracts has been completely abolished in Cyprus. Effective January 1, 2026, under tax reform, buyers no longer need to pay this fee when registering their sales agreement with the Tax Department. This expense has now been eliminated for all transactions, regardless of property value.

2. Reduced VAT: Saving 14% on Eligible Area

VAT applies only to new build properties. The standard rate is 19%. However, buyers can apply for a reduced rate of 5% under the following conditions:

• The property serves as the buyer's first and primary residence in Cyprus (long-term personal use, rental is prohibited while holding this reduced rate).
• The 5% rate applies strictly to the first 130 sqm of residential space (provided the total built area does not exceed 190 sqm and the transaction value remains within statutory limits).
• What it means: This saves 14% on the purchase cost of the eligible area compared to the standard VAT rate, representing major savings on acquisition budgets.

3. Title Transfer Fees

Paid to the Land Registry by the buyer when transferring the ownership deeds into their name:

• Properties Subject to VAT (New builds): The transfer fee is 0%. Buyers are completely exempt from this payment.
• Properties Exempt from VAT (Resales): Calculated on a sliding scale depending on the property value. However, a permanent 50% discount is applied to all non-VAT property transfers.

4. Capital Gains Tax (CGT) on Resale

When selling a property, CGT is charged at a flat rate of 20% on the net profit (the difference between the selling price and original purchase price, adjusted for official inflation and documented property improvements).