Cyprus property taxes and costs for buyers and sellers
Cyprus property taxes and costs in 2026: VAT, transfer fees, the end of stamp duty, mortgage fees, the 0.4% levy, capital gains tax and taxes on rental income.
The headline price of a property in Cyprus is only part of the cost of owning it. Buyers pay either VAT or transfer fees, owners pay tax on rental income, and sellers may face capital gains tax and a disposal levy. The 2026 tax reform simplified some of this, most notably by abolishing stamp duty and removing rental income from the Special Defence Contribution. As of October 2026 the main charges are well defined, and understanding them early helps buyers compare properties on a true like-for-like basis.
It belongs to our property series, which starts with our guide to buying property in Cyprus as a non-EU national. The VAT and transfer fee choice is compared in our article on new-build and resale property.
Key takeaways
- New properties normally carry VAT at 19%, with a 5% rate available on part of a qualifying primary residence.
- Resales carry transfer fees of 3%, 5% and 8% on rising value bands, reduced by 50%.
- Stamp duty was abolished from 1 January 2026, and Immovable Property Tax from 2017.
- Sellers pay a 0.4% levy on disposals and may owe capital gains tax at 20%.
- Since 2026 rental income is subject to income tax only, not to the Special Defence Contribution.
Costs when buying
VAT on new properties
According to the Tax Department, the standard VAT rate is 19%. A reduced rate of 5% applies to the first 130 m² of a new home used as the buyer’s primary and permanent residence, up to a value of €350,000, where the total value does not exceed €475,000 and the buildable area does not exceed 190 m². The home must be used as the main residence for ten years.
Transfer fees on resales
Where no VAT applies, the buyer pays transfer fees to the Department of Lands and Surveys at 3% up to €85,000, 5% from €85,001 to €170,000 and 8% above that. A 50% reduction applies when the purchase is not subject to VAT. No transfer fees are charged if VAT was paid.
Other charges
- Mortgage registration fees of 1% of the market value when the purchase is financed.
- A €50 fee for depositing the contract of sale at the District Lands Office.
- Legal fees, surveys and, where applicable, translation costs.
Stamp duty, which used to apply to contracts, was abolished from 1 January 2026.
Costs while owning
There is no annual national property tax, as Immovable Property Tax was abolished from 1 January 2017. Owners pay municipal and sewerage charges, which vary by locality, and common expenses in shared developments.
Tax on rental income
Rental income is subject to income tax for tax resident individuals, with 20% of gross rent deductible as an allowance before interest and wear and tear, according to the Tax Department’s reform material. From 1 January 2026, rental income is no longer subject to the Special Defence Contribution. Non-residents receiving Cyprus rental income are also required to file a return. Our corporate services page covers registration and filing support.
Buyers whose purchase supports a residence application should also read our guide to Cyprus permanent residency by investment.
Costs when selling
Capital gains tax
Capital gains tax at 20% applies to gains on the disposal of immovable property in Cyprus and on disposals of shares in companies holding Cyprus property. Since 1 January 2026, indirect holdings are caught where at least 20% of the value of the shares derives from Cyprus property, down from 50%. The gain is calculated after inflation indexation of the original cost and deduction of qualifying expenses such as transfer fees and legal costs. Certain disposals, such as gifts from parents to children or between spouses, are exempt.
The transfer levy
Since February 2021, a levy of 0.4% has applied to disposals of immovable property, payable by the seller on the disposal consideration.
For a structured overview of the practical steps, our tax registration and filing page sets out how returns on rental income and gains are handled.
Working out the total
A practical approach is to estimate three figures for each property under consideration: the total acquisition cost including VAT or transfer fees, the annual running costs including management and any rental tax, and the likely exit costs. This makes new and resale options comparable and avoids surprises at completion.
If you would like to talk through how these rules might apply to your own circumstances, our team would be glad to help. You can call +357 979 42 388 or write to us through our contact page.
Frequently asked questions
Is there an annual property tax in Cyprus?
No national annual property tax applies, as Immovable Property Tax was abolished from 2017. Local authority charges still apply.
Do I pay stamp duty on a Cyprus property contract signed in 2026?
No. Stamp duty was abolished from 1 January 2026 and is relevant only for documents signed before that date.
What is the capital gains tax rate on property?
20% on the indexed gain, subject to exemptions and allowable deductions.
Sources
- Tax Department, VAT rates and other information, as of October 2026.
- Ministry of Finance, Reduced 5% VAT rate on the purchase or construction of a residence, applications until 31 December 2026 (in Greek), 2026.
- Department of Lands and Surveys, Rights and fees, as of October 2026.
- Tax Department, Tax Reform 2026, posted 29 May 2026.
This article is for general information only and does not constitute legal, tax or investment advice. Figures are stated as of 2026 and may change; confirm current requirements with the relevant authority and an independent adviser before acting. AT Express is a private consultancy and is not affiliated with any government or official programme.
Featured image: “Desktop after work (Unsplash)” by Luca Bravo, via Wikimedia Commons, CC0 (public domain dedication).
Please note. This article is for general information only and reflects our understanding at the date of publication. Programme rules, thresholds and fees are set by each government and can change at short notice. It is not legal, tax or financial advice; please check the current position with us or the relevant authority before acting.
By the AT Express editorial team · Published 30 October 2026 · Updated 31 October 2026
