The short answer
On a new-build home you pay VAT (19%, or a reduced 5% on a qualifying primary residence up to 130 m²), stamp duty on the contract, legal fees, and Land Registry costs — transfer fees are waived where VAT has been paid. On a resale there is no VAT, but transfer fees of 3–8% apply instead.
Key points
- VAT and transfer fees are mutually exclusive in practice: pay VAT on new-build and transfer fees are waived.
- A qualifying primary and permanent residence attracts a reduced 5% VAT rate on the first 130 m².
- There is no annual property tax in Cyprus.
- Budget for independent legal fees — they are not optional and they are the cheapest protection you will buy.
Line by line
The table below covers the standard costs on a residential purchase. Exact figures depend on the property, so treat this as the structure of the budget rather than a quotation.
| Cost | New-build | Resale |
|---|---|---|
| VAT | 19% standard; 5% reduced on a qualifying primary home up to 130 m² | Not applicable |
| Transfer fees | Waived where VAT is paid | 3–8%, banded by value |
| Stamp duty | Payable on the contract of sale, banded | Payable on the contract of sale, banded |
| Legal fees | Independent lawyer, typically a percentage or fixed fee | Same |
| Land Registry deposit | Administrative fee | Same |
| Mortgage costs | Only if financing — valuation and bank fees | Same |
The reduced 5% VAT rate
Cyprus applies a reduced VAT rate of 5% to a primary and permanent residence, on the first 130 m² of buildable area, subject to conditions on total area and value and on the property being your main home. Above the qualifying threshold the standard 19% applies to the balance.
The relief is applied for through the Tax Department, and it is claimed once — using it on one property affects your eligibility on another. Our team and your lawyer handle the application together as part of the purchase.
After you own it
Cyprus has no annual property tax. Recurring costs are municipal rates, refuse and sewerage charges, buildings insurance, utilities and — where relevant — communal fees for shared grounds. On an energy-class-A home with a heat pump, utilities are usually the smallest surprise in the list.
Our cost tools let you model VAT and total purchase cost for a specific figure before you speak to anyone.
Frequently asked
No. Transfer fees are waived on a property where VAT has been paid. Resale property without VAT attracts transfer fees of 3% to 8%, banded by value.
Independent lawyers typically charge either a fixed fee or a percentage of the purchase price plus VAT and disbursements. Always instruct a lawyer who acts only for you and not for the seller.
No. The immovable property tax was abolished in 2017. You still pay local municipal rates, refuse and sewerage charges.
Next steps
Last reviewed 20 August 2026. General information, not legal or tax advice — always instruct an independent Cyprus-registered lawyer.