Cyprus Property Tax 2026 — What Buyers, Sellers and Owners Pay

Transfer fees are paid to the Cyprus Land Registry when you register the property in your name. They are calculated on the market value of the property, not the purchase price (though these are usually the same). The scale is progressive: 3% on the first €85,000, 5% on the portion from €85,001 to €170,000, and 8% above €170,000.

On a €300,000 property, the calculation is: 3% of €85,000 (€2,550) + 5% of €85,000 (€4,250) + 8% of €130,000 (€10,400) = €17,200 before any reduction. On a €150,000 property: 3% of €85,000 (€2,550) + 5% of €65,000 (€3,250) = €5,800. The marginal rate above €170,000 is 8% — the highest band.

Transfer fees are reduced by 50% when no VAT is charged on the purchase, as on a resale. On the same €300,000 property, the reduced fee is €8,600 instead of €17,200. When VAT is charged, as on most new builds, no transfer fees are due.

If you buy shares in a property-owning company instead of the property itself, no transfer fees apply — the transfer is of shares, not immovable property. This is a common structure for high-value properties, though it carries its own tax implications on the share disposal. The transfer fee must be paid within 6 months of the sale agreement being deposited at the Land Registry.

New builds in Cyprus attract 19% VAT — the standard rate. But a first primary residence qualifies for a reduced rate of 5% on the first 130 m², on value up to €350,000; the rest is charged at 19%. The home must be no larger than 190 m² and cost no more than €475,000, or 19% applies to the whole price. The reduced rate is not automatic — you must apply and meet all three conditions.

The conditions are strict. First, this must be your first primary residence purchase in Cyprus — you must not have previously owned a property that you used as your primary residence. Second, you must intend to live in the property as your primary residence for at least 10 years. Third, you must not hold any other property in Cyprus that you have used as a primary residence.

On a €350,000 new-build apartment of 120 m², the 5% rate applies to the whole price: VAT is €17,500. At 19%, VAT would be €66,500, a saving of €49,000. A 200 m² home at €500,000 is over the 190 m² and €475,000 limits, so 19% applies to the whole price: VAT is €95,000.

Resale properties do not attract VAT — they were already subject to VAT when first sold. The reduced 5% rate only applies to new builds. If you buy a plot of land and build yourself, the 5% rate can apply to the construction cost under the same conditions, but the application process is separate from the purchase.

Stamp duty on immovable property transfers was abolished from 1 January 2026. The old rate was 0.15% on values up to €170,860 and 0.20% above. On a €300,000 property, that was approximately €516. It is now €0. Several Cyprus property sites and conveyancing calculators still show stamp duty as payable in 2026 — they have not been updated.

Immovable Property Tax (IPT) was abolished in 2017. Before abolition, it was an annual tax levied by the central government on the 1980-assessed value of immovable property, with rates from 0% to 0.4%. It has not been payable for 9 years. Any page that lists IPT as a current Cyprus property tax is outdated by nearly a decade.

What replaced them: nothing. Stamp duty was not replaced by another levy. IPT was not replaced — annual property holding costs now consist only of municipal and community taxes, sewerage charges, and refuse collection, all of which are local authority charges, not central government taxes. The abolition reduces the total cost of a €300,000 property purchase by approximately €516 compared to 2025.

Annual property taxes in Cyprus are now local authority charges, not central government taxes. Municipal or community tax is levied on the 1980-assessed value of the property — not the market value. The 1980 value is typically 10-20% of current market value, so the actual municipal tax is modest: €80-€350 per year for most properties.

Sewerage board charges are set by the local Sewerage Board (SAPA) and vary by district. In Limassol and Nicosia, expect €180-€350 per year for an apartment and €250-€450 for a house. Refuse collection is €80-€150 per year, billed by the municipality. These are separate bills — they do not arrive as a single property tax statement.

For apartments, common expenses (syndesmos) cover building maintenance, lift service, communal lighting, cleaning and gardening. These typically run €60-€150 per month depending on the building — a luxury complex with a pool and 24-hour concierge can exceed €300 per month. For houses, there are no common expenses, but you bear the full cost of maintenance, pool upkeep, and garden care directly.

Utilities (water and electricity) are billed separately by the Water Board and the Electricity Authority of Cyprus (EAC). Annual electricity for a 120 sqm apartment runs €1,200-€2,000 depending on air conditioning use. Water is €200-€400 per year. Property insurance is €200-€500 per year for a standard apartment, more for houses with pools. Total annual holding costs for a €350,000 apartment: €2,500-€4,000, or roughly 0.7-1.1% of property value per year.

When you sell Cyprus immovable property, capital gains tax applies at 20% on the gain. The gain is calculated as the sale price minus the original purchase price, minus the cost of any permanent improvements, minus the indexation allowance (inflation adjustment based on the CPI from the date of purchase to the date of sale).

There is a €85,430 lifetime exemption available on the disposal of a principal residence — you can use it once. If the gain on your principal residence is below €85,430, no CGT is payable. Above that, 20% applies to the excess. The exemption is personal, not per-property — once used, it is exhausted.

Separately, the 0.4% levy applies on the gross sale proceeds. On a €500,000 sale, that is €2,000. This levy applies regardless of whether there is a gain — it is on the sale price, not the profit. The full CGT calculation — including indexation, the deduction of improvement costs, and the interaction with the principal residence exemption — is covered in detail on our capital gains tax page.

From 2026, the Tax Commissioner may withhold consent to a property transfer where either the buyer or the seller is not tax compliant. This means the Land Registry will not register the transfer until the Tax Department confirms that both parties have no outstanding tax obligations.

A tax compliance check covers: filed income tax returns (TD1 for individuals, TD4 for companies), paid income tax liabilities, paid SDC (if applicable), paid GHS/GESY contributions, and VAT returns (if VAT-registered). Outstanding debts, unfiled returns, or unpaid contributions can trigger a transfer hold.

Before any property transfer in 2026, request a tax clearance certificate from the Tax Department for both parties. The certificate confirms compliance and takes 2-4 weeks to issue. If a hold is placed, the transfer cannot proceed until the non-compliance is resolved — this can delay a sale by weeks or months and, in some cases, cause a buyer to lose their mortgage offer or a seller to breach their sale contract.

If you are buying a new build as your first primary residence in Cyprus, the 5% VAT rate is the single biggest saving available — €49,000 on a €350,000 property versus the 19% rate. Check eligibility before you sign the contract; the reduced rate is claimed from the VAT office, not the developer.

If you are buying a resale, no VAT is charged, so transfer fees are reduced by 50%. Budget for those plus approximately 1% for legal fees. Stamp duty is no longer payable. On a €300,000 resale, expect €8,600 in transfer fees and €2,000-€3,000 in legal fees. When VAT is charged, as on most new builds, no transfer fees are due.

If you are selling, budget the 0.4% levy on the sale price plus 20% CGT on any gain above your purchase price, improvements, and indexation. If it is your principal residence, the €85,430 lifetime exemption may eliminate or reduce the CGT. For rental income tax on properties you let out, see our dedicated rental pillar — the 3% SDC on rents was abolished in January 2026.