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Purchase costs in Cyprus

Purchase costs in Cyprus There are many other costs to consider when buying property in Cyprus other than the cost of the property itself. These can vary based on the type of property you are purchasing and the price.

Below, we have outlined the main purchase costs in Cyprus.

VAT on new build properties

All new-build (brand new) properties are subject to FBA at 19 per cent. However for your first purchase of a home for residence purposes (not for rental), up to 135 m2 and a maximum price of €350,000 euro the VAT is reduced to 5%. Anything above this is charged at the full 19%.

Property transfer fees

Property Transfer Fees (or Stamp Duty as we know it in England) are payable on the transfer of the title deeds to a property in Cyprus - when your lawyer transfers and registers the property in your name at the land registry.

The fee is based on a sliding scale from 1.5 to 4 per cent depending on the value of the property. For instance, for the first €85,000 of a property’s value (per named owner), you pay 1.5 per cent of the purchase price; between €85,430 and €170,860 the rate is 2.5 per cent; and over €170,860 the rate is 4 per cent.

VAT and transfer tax

If you pay VAT on a property you do not pay transfer tax. Buyers should note that in Cyprus the amount of transfer tax due is only confirmed on the day of the title transfer, as it is based on a valuation of the property by the land registry and not the actual purchase price (although typically these two match).

If the property is a resale and does not yet have title deeds you will be obliged to pay a fee of 0.5% of the purchase price or the original sale price (whichever is higher) to register your ownership at the Land registry office. You will subsequently obtain a reduced rate on your transfer fees of 10%.

Stamp Duty in 2026

As of 2026 Stamp Duty (which was 0.15 per cent for properties under €200,000 and 0.2 per cent over that) has been abolished, saving buyers €600 on a €300,000 property, for example.

Property surveys

If you decide to have a survey completed on a resale property, make sure the surveyor is registered with The Cyprus Scientific and Technical Chamber (ETEK), and expect to pay from around €500, depending on size of the property. Please do use an independent lawyer to represent you.

Legal fees Power of Attorney costs

Legal fees in Cyprus are usually charged as a percentage of the property purchase price – typically 1 per cent plus FBA (VAT).

Their services should cover the search with the land registry, checking of planning and building permits, checks that the land is suitable for building (if relevant), drawing up of contracts, stamping and registering the contracts, and applying for permission to purchase from the Council of Ministers.

If you require your lawyer to act as Power of Attorney there will also be a small additional fee for drafting this, arranging to have it certified, stamped in the tax office and then lodging it with the land registry.

FAQs: Purchase costs in Cyprus

What are the main costs when buying property in Cyprus?

In addition to the purchase price, buyers should budget around 10% extra for taxes, legal fees, and registration costs on a second-hand property. These include transfer fees, stamp duty, and notary or legal fees. VAT on newbuilds is 19%, or 5% under certain conditions.

Do you pay transfer fees when buying property in Cyprus?

Yes. Transfer fees are paid to the Land Registry when the title deeds are transferred. The rate depends on the property’s value, though reductions often apply if VAT has already been paid on the purchase.

Is VAT charged on property in Cyprus?

Yes, VAT applies to new-build properties. A reduced rate of 5% is charged on the first 130m² of your main residence, while additional space or secondary homes are charged at 19% - check full conditions.

What is stamp duty in Cyprus?

Stamp duty is paid when signing the sales contract. The rate is 0.15% for property values between €5,001 and €170,000, and 0.20% on amounts above that threshold. There is a maximum stamp duty cap of €20,000.

How much are legal fees when buying property in Cyprus?

Legal fees are usually around 1% of the purchase price, though some lawyers may charge a fixed fee. It is advisable to confirm costs in writing before proceeding.

Are there annual property taxes in Cyprus?

Immovable Property Tax was abolished in 2017. However, local municipalities charge annual property and refuse collection taxes, usually a few hundred euros per year depending on the property.

Are there agency fees when buying in Cyprus?

Yes. Real estate agent fees are typically 3%-5% of the property’s value and are usually split between buyer and seller, although arrangements can vary.

How should I budget for additional costs?

It is recommended to set aside at least 10% of the property price to cover all fees, taxes, and related expenses. Buyers paying in foreign currency should also factor in exchange rate fluctuations and transfer fees. Money can be transferred to Cyprus via international bank transfers, online money transfer services, or specialist foreign exchange providers. Using a dedicated service can reduce fees and improve rates - get in touch with A Place in the Sun Currency today to see how we can help.

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