In short: on a new build from a developer the main tax is VAT — 19%, or 5% on a main home within the limits. Where VAT is paid there are no Land Registry transfer fees, stamp duty was abolished from 1 January 2026, and Cyprus has had no annual property tax since 2017. When you sell, capital gains tax is 20%, with lifetime exemptions that the 2026 reform raised to €30,000, or €150,000 for a home you have lived in for five years.
Checked on 23 October 2026 against PwC Worldwide Tax Summaries (updated 4 August 2026), KPMG and EY analyses of the 2026 tax reform, and Cyprus legislation. Figures move with legislation; the date is the date of the check.
When you buy
VAT on a new build. A new home bought from a developer carries VAT at 19%. A reduced rate of 5% applies to the first 130 m² and the first €350,000 of the price when the home is your main residence, its buildable area is no more than 190 m² and its total value no more than €475,000; you must live there as your main residence for ten years. The rest of the area and value is taxed at 19%.
Land Registry transfer fees. Where VAT was paid, no transfer fees are due. On a resale or any purchase without VAT, fees are 3% on the value up to €85,000, 5% from €85,000 to €170,000 and 8% above, with a 50% reduction.
Stamp duty. Abolished from 1 January 2026. A contract signed by at least one party before 31 December 2025 remains subject to the old stamp duty.
Other costs. A lawyer's fee for checking the property and the contract, and the permit application if you are buying from outside the EU (see buying property in Cyprus as a foreigner).
While you own it
There is no annual national property tax in Cyprus: the immovable property tax was abolished from 1 January 2017. Municipalities and sewerage boards charge their own fees, which vary by area. If you rent the property out, the rental income is taxable in Cyprus; a tax adviser can confirm how this interacts with tax in your country of residence.
When you sell
Capital gains tax is 20% of the gain on Cyprus property. The 2026 tax reform, in force from 1 January 2026, raised the lifetime exemptions:
| Exemption | Up to 2025 | From 2026 |
|---|---|---|
| General, any individual | €17,086 | €30,000 |
| Main residence, lived in for at least 5 years | €85,430 | €150,000 |
| Agricultural land sold by a farmer | €25,629 | €50,000 |
The exemptions are lifetime totals, not per sale, and together cannot exceed €150,000. How the new amounts apply to a sale agreed in 2025 and completed in 2026 should be confirmed with a tax adviser.
The seller also pays a levy of 0.4% of the sale price. Since 2026, selling shares in a company whose value comes at least 20% from Cyprus property (previously 50%) also falls under capital gains tax.
If the money comes from crypto
For a Cyprus tax resident, gains on the disposal of crypto-assets are taxed at a flat 8% from 1 January 2026. A buyer resident elsewhere is taxed on the conversion under the rules of their own country. See buying property in Cyprus with crypto.
This guide is general information, not tax advice.