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, stamp duty and the key deadlines that apply right now.

VAT on Property in Cyprus

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, stamp duty 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%)
• 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.

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 €85,430 lifetime exemption on the sale of a primary residence
• Agricultural land: Additional €25,629 exemption
• Other property: Up to €17,086 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

Stamp duty is payable on the Contract of Sale at the time of signing and registration. Rates are:

• 0.15% on contract values up to €170,860
• 0.20% on amounts above €170,860

Stamp duty is capped at €20,000 per contract. It must be paid within 30 days of signing.

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

Stamp duty must be paid within 30 days of contract signing. 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.

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 €85,430 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%.

Related Reading

• Buying Property in Cyprus: Step-by-Step Buyer Guide (2026)
• Cyprus Permanent Residence by Investment (2026)
• Long-Term Rentals in Cyprus 2026

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.

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%)
• 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.

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 €85,430 lifetime exemption on the sale of a primary residence
• Agricultural land: Additional €25,629 exemption
• Other property: Up to €17,086 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

Stamp duty is payable on the Contract of Sale at the time of signing and registration. Rates are:

• 0.15% on contract values up to €170,860
• 0.20% on amounts above €170,860

Stamp duty is capped at €20,000 per contract. It must be paid within 30 days of signing.

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

Stamp duty must be paid within 30 days of contract signing. 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.

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 €85,430 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%.

Related Reading

• Buying Property in Cyprus: Step-by-Step Buyer Guide (2026)
• The Ultimate Guide to Buying Property in Cyprus in 2026
• Cyprus Permanent Residence by Investment (2026)

Written by Marios Spyrou, Sales Director — NiSea Realty | Licensed Real Estate Agent, Cyprus (Reg. 1378, Licence 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.