Taxation in Cyprus

Buying property in Cyprus has become easier and more straightforward, thanks to their world-leading and advanced Real Estate Registration Institute. But do not forget about the tax system

Taxes to be paid when acquiring property in Cyprus:

Stamp Duty: This is the first payment that future owners of Cypriot property need to make. It must be paid within 30 days of signing the sales contract before submitting the contract to the Land Registry. The stamp duty is calculated at 0.15% on the first €170,860 of the property’s value and 0.2% on the remaining amount.

Property Transfer Fee: This fee is levied for transferring ownership rights. When purchasing a new property, this fee does not apply. On the primary market, buyers are exempt from paying the property transfer fee, meaning it is 0%.

VAT: For the first residential property with an area of up to 200 m², used as a personal residence, VAT in Cyprus is 5%, while for all other properties, it is 19%. Secondary properties are not subject to VAT.

It is advisable to seek the assistance of independent qualified lawyers to ensure a smooth transaction and address any legal concerns. The payment of stamp duty and property transfer fees, as well as understanding the applicable VAT rates, are essential aspects to consider during the purchasing process.