Last updated: July 2026

Cyprus property taxation has undergone meaningful reform in recent years, and 2026 brings important updates that every buyer, seller and investor needs to understand before proceeding with a transaction. This guide covers VAT, Capital Gains Tax, transfer fees, and the key deadlines that apply right now.

VAT on Property in Cyprus

VAT applies to new residential properties purchased directly from a developer. The standard rate is 19%. However, a significantly reduced rate of 5% applies to a buyer's primary residence, subject to conditions:

• The buyer must be purchasing their first home in Cyprus
• The property must be used as a primary and permanent residence for at least 10 years
• Internal area must not exceed 130m² (the reduced rate applies to the first 130m² only; the remainder is charged at 19%)
• Property value must not exceed €350,000 (maximum total transaction value ceiling: €475,000 — amounts above these thresholds are charged at the standard 19% VAT rate)
• Plot area must not exceed 3 times the covered area

VAT does not apply to resale properties. If you are buying a second-hand property, transfer fees apply instead.

Cyprus VAT Registration Threshold (2026)

This is separate from the property VAT rates above, and applies to anyone conducting taxable business activity in Cyprus — including landlords letting property commercially, or developers and agents selling new-build units. VAT registration becomes mandatory once taxable turnover exceeds €15,600 in any rolling 12-month period (not the calendar year), and you must register within 30 days of crossing that threshold. Two other triggers apply regardless of turnover: intra-EU acquisitions above €10,251.61 in a calendar year, and receiving B2B services from abroad (no threshold at all). The €15,600 registration threshold has not changed for 2026.

Transfer Fees

Transfer fees are charged by the Department of Lands and Surveys when the title deed transfers to the new owner. The rates are:

• 3% on the first €85,000 of property value
• 5% on €85,001 to €170,000
• 8% on amounts above €170,000

Important exemption: Transfer fees are waived entirely for properties subject to VAT (new builds where VAT has been charged). This means on most new-build purchases, you pay either VAT or transfer fees — not both.

Capital Gains Tax (CGT)

Capital Gains Tax in Cyprus is charged at 20% on the net profit from the sale of immovable property. It is paid by the seller, not the buyer.

Significant exemptions apply:

• Primary residence exemption: Up to €150,000 lifetime exemption on the sale of a primary residence
• Agricultural land: Additional €50,000 exemption
• Other property: Up to €30,000 lifetime exemption

CGT is calculated on the gain adjusted for inflation using the Consumer Price Index from the date of acquisition to the date of sale.

Stamp Duty (Abolished 1 January 2026)

Stamp duty on property transactions in Cyprus was fully abolished effective 1 January 2026 under Law 239(I)/2025. This applies to all contracts of sale, loan agreements, and related property documents. Buyers no longer need to budget for or register stamp duty at the Tax Department prior to signing. This change has meaningfully reduced closing costs for both local and foreign purchasers.

Immovable Property Tax

Cyprus abolished the national Immovable Property Tax (IPT) in 2017. However, municipalities charge their own local property taxes which are modest — typically €100–€300 per year depending on the property value and location.

Key Deadlines in 2026

No stamp-duty payment deadline applies to documents executed from 1 January 2026 because the Stamp Duty Laws were repealed by Law 239(I)/2025. Contracts executed before that date may require historical treatment according to the rules applicable when they were signed. VAT returns for property transactions are filed quarterly. Capital gains declarations must be submitted within 30 days of the property transfer at the Land Registry. Business VAT registration (see threshold above) must be completed within 30 days of exceeding €15,600 in rolling 12-month turnover.

Frequently Asked Questions

Do I pay VAT or transfer fees when buying property in Cyprus?

For new builds purchased directly from a developer, VAT applies and transfer fees are waived. For resale properties, transfer fees apply and VAT does not. You pay one or the other, not both.

What is the capital gains tax rate in Cyprus?

20% on net profit from the sale of immovable property, paid by the seller. Significant lifetime exemptions apply — up to €150,000 for a primary residence.

Can I reduce the VAT rate to 5% on my Cyprus property purchase?

Yes, if it is your first home in Cyprus, you will use it as your primary residence for at least 10 years, and the internal area does not exceed 130m². The 5% rate applies to the first 130m²; any area above that is charged at 19%.

What is the Cyprus VAT registration threshold in 2026?

€15,600 in taxable turnover within any rolling 12-month period, unchanged for 2026. This applies to businesses and commercial landlords, not to a private individual simply buying a home — property VAT rates (19%/5%) are separate and covered above. Registration must be completed within 30 days of crossing the threshold.

Thinking about buying or selling property in Cyprus? Get clear, honest advice from a licensed agent who knows the market. Browse our current listings or contact us directly.

Written by Marios Spyrou, Sales Director — Ni.Sea Realty Ltd | Licensed Real Estate Agency | R. N. 1378 | L.N. 690/E

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Related Guides

Relocating principals looking for residency benefits should explore the Cyprus Golden Visa (Permanent Residency) programme. For property acquisition, see our guide for foreign buyers and our overview of property transfer fees in Cyprus.