Foreigners buying property in Cyprus pay the same purchase taxes as Cypriot citizens, with no nationality surcharge. New-build homes carry VAT at 19%, or 5% when the home qualifies as your primary residence. Resale homes carry no VAT, only Land Registry transfer fees of 3% to 8%, reduced by 50%. Stamp duty was abolished for contracts signed from 1 January 2026.
VAT and transfer fees never apply to the same purchase, so the type of property you buy decides which of the two you pay. After completion, owning the property triggers no annual state property tax, as Cyprus abolished its immovable property tax in 2017. Where foreigners can differ from local buyers is the purchase process rather than the tax bill: buyers from outside the EU need approval from the Council of Ministers before the property can be transferred into their name.
Key facts at a glance
- Nationality: same tax rates for foreign and Cypriot buyers
- New-build property: 19% VAT, or 5% on a qualifying primary residence (size and price limits apply)
- Resale property: no VAT; transfer fees of 3%, 5% and 8% in bands, cut by half
- Stamp duty: abolished for documents signed from 1 January 2026
- Annual property tax: none since 2017
- Non-EU buyers: Council of Ministers approval required
Cyprus applies VAT, transfer fees and other purchase charges in the same way to every individual buyer, whatever their nationality. Buyers who want the reduced 5% VAT rate on a primary residence apply through the Cyprus Tax Department, which handles requests for a reduced rate certificate. The size, price and residence conditions behind that rate are covered in our guide to VAT on new-build apartments in Cyprus.
Purchase taxes are only one part of the budget. Legal fees, bank charges and running costs are set out in our breakdown of additional costs when buying property in Cyprus, while taxes that come after the purchase, such as capital gains tax on a later sale or tax on rental income, are explained in our full guide to property tax in Cyprus.
Purchase taxes and fees in Cyprus: rates for 2026
VAT on property purchases
VAT applies to new-build property in Cyprus, meaning homes sold for the first time by a developer. The standard rate is 19%. A reduced 5% rate is available to individuals who buy a home to live in as their main and permanent residence in Cyprus, and it is not limited to Cypriot or EU citizens: a non-EU buyer who moves into the home qualifies on the same terms. Buy-to-let purchases, holiday homes and second properties pay the standard 19%.
Since the 2023 reform, the reduced rate depends on both the size and the price of the home:
| Home bought as main residence | VAT charged |
|---|---|
| Up to 130 m² and up to €350,000 | 5% on the full price |
| Above 130 m² or €350,000, but within 190 m² and €475,000 | 5% on the first 130 m² (up to €350,000), 19% on the rest |
| Above 190 m² or above €475,000 | 19% on the full price |
The reduced rate is not automatic. Buyers apply for it through the Tax Department, and it is applied only once the Tax Commissioner has approved the request. The home must then stay the owner’s main residence for 10 years; if it stops being so earlier, the owner repays the difference between 5% and 19% in proportion to the years left. Buildings whose planning permit was applied for by 31 October 2023 can still use the older rule, 5% on the first 200 m² with no price cap, for applications made until 31 December 2026.
Where VAT is charged on a purchase, no transfer fees are paid at the Land Registry.
Transfer fees on resale properties
Resale homes carry no VAT. Instead, the buyer pays a transfer fee to the Department of Lands and Surveys (DLS) when the title is registered in their name. Under the DLS fee schedule for property sales, the fee is charged on the sale price or the market value, whichever applies, in three bands:
| Part of the price | Rate |
|---|---|
| Up to €85,000 | 3% |
| €85,001 to €170,000 | 5% |
| Above €170,000 | 8% |
A 50% discount applies to every transfer where these fees are charged, so buyers pay half of the scale. On a €250,000 resale apartment, the scale gives €13,200 and the buyer pays €6,600. The discount does not apply when the seller acquired the property through a lender’s forced sale, and if the DLS considers the declared price below market value, it calculates the fee on its own valuation.
The bands apply to each buyer’s share, so buying jointly lowers the bill: two co-owners of the same €250,000 home pay €4,550 in total after the discount. The DLS publishes an official transfer fees calculator for exact figures, and the registration process itself is covered in our guide to title deeds in Cyprus.
Is stamp duty still payable in 2026?
No. Cyprus repealed its stamp duty laws with effect from 1 January 2026, under Law 239(I)/2025, so property sale contracts signed from that date carry no stamp duty. Under the old rules, buyers paid stamp duty on the contract value within 30 days of signing: 0.15% on the amount between €5,000 and €170,000 and 0.2% above that, capped at €20,000.
The cut-off follows the date the contract was signed, not the date the purchase completes. The Tax Department has confirmed that a document signed by at least one party on or before 31 December 2025 still falls under the old law and must be stamped, even if the sale goes through later. The repeal is listed among the changes on the Tax Department’s Tax Reform 2026 page, and what the reform means for property owners more broadly is covered in our article on the 2026 tax reform for property investors.
Other mandatory charges
Beyond VAT or transfer fees, the remaining purchase costs are smaller but still belong in the budget. Buyers who finance the purchase with a Cypriot mortgage pay the DLS a registration fee of 1% of the loan amount when the mortgage is recorded against the property, as set out on the DLS mortgage registration page. A €150,000 loan therefore adds €1,500 to the purchase costs.
Legal fees are not fixed by law. Most buyers appoint an independent lawyer to check the title, review the sale contract and handle the Land Registry steps, usually for a fixed fee or a percentage of the price agreed at the start. Financing options open to non-resident buyers are covered in our guide to financing for foreign buyers in Cyprus.
Do non-EU buyers need permission to buy property in Cyprus?
Yes. EU and EEA citizens buy property in Cyprus on the same terms as Cypriots, but buyers from outside the EU, including UK nationals since Brexit, need a permit under the Immovable Property Acquisition (Aliens) Law, Cap. 109. The power sits with the Council of Ministers and in practice is delegated to the District Officer of the district where the property is located. The Land Registry requires this permit before it transfers the title to a foreign buyer.
The permit does not change the tax bill, but it limits what can be bought. As a rule, a non-EU buyer, or a married couple together, may acquire one home, either a house or an apartment, or a plot for one home of up to about 4,014 m². Larger or additional purchases need a separate, reasoned approval. There is no statutory deadline: decisions usually take from one to several months, and ordinary residential applications are rarely refused.
The contract can be signed and the price paid while the application is pending, because the permit governs registration of the title rather than the sale itself. Lodging the signed contract at the Land Registry protects the buyer’s right to have the title transferred once the permit is issued. How property ownership connects to residence permits is explained in our guide to residency in Cyprus for non-EU citizens.
These rules are under review. In September 2026, Parliament’s Interior Committee took up four bills on foreign property ownership, including proposals to limit third-country buyers to a single home and to ban foreign purchases of agricultural land, and the government said it was preparing its own updated law. None of these proposals had become law at the time of this update.
How much tax will you pay? Three examples on a €250,000 property
The same price can lead to very different tax bills, depending on whether the home is new or resale and how the buyer plans to use it. The examples below assume a single buyer, a contract signed in 2026 and a home of 100 m².
| New-build, main residence | New-build, investment or second home | Resale | |
|---|---|---|---|
| Price (before VAT) | €250,000 | €250,000 | €250,000 |
| VAT | €12,500 (5%) | €47,500 (19%) | none |
| Transfer fees | none | none | €6,600 |
| Stamp duty | none | none | none |
| Total purchase tax | €12,500 | €47,500 | €6,600 |
Developers usually quote new-build prices before VAT, so the 5% or 19% comes on top of the advertised figure. VAT and transfer fees are the largest variables in the budget, and which of them applies, and at what rate, is decided by the type of property and its intended use rather than by the buyer’s nationality. A mortgage would add the 1% registration fee on the loan amount in each of the three cases.
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FAQ – Frequently Asked Questions
Do foreigners pay higher property taxes in Cyprus?
No. Foreign and Cypriot buyers pay the same VAT, transfer fees and other purchase charges, and nationality has no effect on the rate.
Is VAT always payable when buying property in Cyprus?
No. VAT applies to new-build property sold for the first time. Resale property is VAT-free and carries Land Registry transfer fees instead.
Can foreign buyers qualify for the reduced 5% VAT rate?
Yes, if the home becomes their main and permanent residence in Cyprus and stays within the limits: 5% applies to the first 130 m², up to €350,000, on homes of no more than 190 m² and €475,000 in total.
Is there an annual property tax in Cyprus after purchase?
No, Cyprus does not impose an annual state immovable property tax on property owners.
Is stamp duty still payable in 2026?
No. Cyprus abolished its annual immovable property tax in 2017. Owners still pay local charges, such as municipal fees, set by the local authority.
How many properties can a foreigner own in Cyprus?
EU citizens face no limit. Non-EU buyers may, as a rule, acquire one home, or one plot for a home of up to about 4,014 m², with a permit issued on behalf of the Council of Ministers. Any further purchase needs a separate approval.
This article is for general information and reflects the rules in force in October 2026. Tax rates, VAT conditions and the rules for foreign buyers can change, so check your own situation with a qualified lawyer or tax adviser in Cyprus before signing a contract.
