The Cost of Buying Property in Cyprus in 2026

VAT on new builds: 5% or 19%?

New residential properties sold for the first time carry VAT at the standard rate of 19%. If the home will be your primary residence, you can apply for a reduced 5% rate under rules amended in June 2023: the 5% applies to the first 130 square metres of buildable area, provided the value does not exceed €350,000, with proportional relief available up to 190 square metres and a total value of €475,000, according to guidance summarised by PwC Cyprus. Above those limits, 19% applies to the full price.

Transitional rules preserve the older, more generous regime — 5% on the first 200 square metres — for homes whose planning permit was issued, or applied for, by 31 October 2023, with declarations due within three years of the 16 June 2023 amendment. One caveat to plan around: if you stop using the home as your primary residence within ten years, you repay the difference between the reduced and standard VAT rates for the remaining years.

• Standard VAT rate on new homes: 19%
• Reduced rate: 5% on the first 130 sqm, for homes valued up to €350,000 (tapering up to 190 sqm / €475,000)
• Persons with disabilities: 5% on the first 190 sqm
• Clawback applies if the home stops being your primary residence within 10 years

Transfer fees on resales

Resale properties fall outside the VAT net; instead you pay Land Registry transfer fees when the title deed is registered in your name. The rates are banded: 3% on the first €85,000 of the property value, 5% from €85,001 to €170,000 and 8% above €170,000.

Two long-standing reliefs matter. Where VAT was paid on the purchase, no transfer fees are due at all. Where no VAT applies — the typical resale — the calculated fees are reduced by 50%. Buying in joint names also helps, because the value is split across the bands per buyer: on a €300,000 resale bought jointly by a couple, the bill works out at €5,800 after the 50% reduction, against €8,600 for a sole buyer.

• 3% up to €85,000; 5% from €85,001 to €170,000; 8% above €170,000
• 50% reduction where the purchase was not subject to VAT
• No transfer fees where VAT was paid on the property
• Joint purchases split the value across the bands, lowering the bill

Stamp duty: abolished from 2026

Until the end of 2025, buyers paid stamp duty on purchase contracts at 0.15% on values between €5,001 and €170,000 and 0.2% above that, capped at €20,000. As part of the tax reform in force from 1 January 2026, stamp duty has been abolished entirely; contracts signed by 31 December 2025 remain subject to the old rules, according to Cypriot law firm Aptus Legal's summary of the reform. For anyone signing a contract in 2026, this line of the budget simply disappears.

Title deeds: check before you sign

Cyprus historically carried a backlog of properties sold without separate title deeds, which left so-called trapped buyers waiting years for ownership to be registered — often because the developer had mortgaged the land. A law passed in summer 2025, Law 110(I)/2025, created a mechanism for these transfers to proceed, including a route to court where a lender unreasonably refuses to release its charge, as reported by the Cyprus Mail.

The practical lesson for new buyers is straightforward and inexpensive: check the paperwork before you sign, not after.

• Obtain a recent Land Registry search certificate before signing
• Confirm whether a separate title deed has been issued for the property
• Check for mortgages or other encumbrances on the land
• Instruct an independent lawyer, not one recommended by the seller or developer

Budgeting: the whole picture

Beyond tax, budget for independent legal fees, a survey if you are buying an older property, and modest registration charges; if you need a mortgage, lenders add valuation and arrangement fees. Capital gains tax falls on sellers rather than buyers, and the 2026 reform raised the lifetime exemptions — to €150,000 for a primary residence and €30,000 generally — which is worth knowing for the day you sell.

If you are still at the comparison stage, Habio's Cyprus listings and area guides are a useful way to see how asking prices vary between districts before you commit to a budget.