Understanding property taxes and fees is essential when buying or selling real estate in Cyprus. While the island remains one of the most tax-friendly destinations in Europe, there are still several charges that buyers and sellers need to account for. Being informed will help you plan your budget, avoid surprises and make smarter investment decisions.
Here is a complete guide to property taxes in Cyprus for 2025.
1. Stamp Duty
Stamp duty is payable when the Sales Agreement is signed. The rate depends on the property value:
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0.15% for amounts up to €170,000
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0.20% for amounts above €170,000
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Maximum capped at €20,000 per agreement
2. Property Transfer Fees
Transfer fees are paid when the property is officially registered in the buyer’s name at the Land Registry.
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If VAT was already paid on the property, no transfer fees apply.
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If VAT was not paid, the fees are calculated on the market value at rates between 3% and 8%.
Also note that Transfer Fees are reduced by 50% in case the transaction is not subject to VAT (such as resale properties).
Example:
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€0–€85,000 → 3%
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€85,001–€170,000 → 5%
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Above €170,000 → 8%
The Land Registry often reassesses values, so buyers should ensure paperwork is clear.
3. Value Added Tax (VAT)
In June 2023, Cyprus changed the reduced VAT on primary residence criteria. Under the new rules, the reduced rate of 5% applies to the first 130 sq m of a primary residence, provided that:
- The primary residence is up to EUR 350,000 in value, and
- The total transaction value does not exceed EUR 475,000, and
- The total constructed internal areas do not exceed 190 sq m.
- Individuals with disabilities are allowed a reduced rate of 5% on the first 190 sq m of a primary residence.
4. Capital Gains Tax (CGT)
Individuals are exempt from profit acquired upon the disposal of immovable property once off in their lifetime, as follows:
- €85.430, disposal of a dwelling house (under conditions)
- €25.629, disposal of agricultural land by a farmer (under conditions)
- €17.086, disposal of other property
5. Annual Municipal Taxes
Although Cyprus abolished the Immovable Property Tax (IPT) in 2017, local municipalities still charge small annual property fees:
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Municipal tax: Based on property value, usually €50–€200 per year
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Refuse collection fees: Around €150–€250 annually depending on location and property size
These charges are relatively minor compared to other EU countries.
6. Inheritance and Wealth Taxes
Cyprus is one of the few European countries with no inheritance tax and no wealth tax on property. This makes the island especially attractive for estate planning and long-term investment.
7. Legal and Other Fees
Besides taxes, buyers should budget for:
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Legal fees: 1%–2% of purchase price for independent lawyer services
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Bank charges: If taking a mortgage, arrangement fees may apply
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Surveyor fees: Optional but useful for property inspections
Why Cyprus Remains Tax-Friendly
Compared to many EU countries, Cyprus keeps property-related taxes relatively low. Combined with strong investment potential and legal protections, this makes Cyprus a safe and cost-effective real estate market.
Taxes and fees are part of every property transaction in Cyprus, but with the right planning they are straightforward and manageable. The combination of low ongoing costs, no inheritance tax and exemptions on capital gains makes Cyprus one of the most tax-efficient places to buy property in Europe.
At LifeRealty, we guide our clients through the entire buying or selling process, including tax planning and paperwork. Whether you’re purchasing a new home or selling an investment property, our team ensures clarity, transparency and peace of mind.