The cost of buying property in Cyprus involves more than the asking price. As of September 2026, the main extras are VAT or Land Registry transfer fees, legal costs and, if you borrow, financing costs. One familiar item has gone: stamp duty no longer applies to property contracts signed from 1 January 2026. This guide explains each cost and how the rules differ between a new home and a resale.
We have been building homes in Limassol since 1978, and the question we hear most often is simple: what will I actually pay? The answer depends mainly on one thing, which is whether VAT is payable on the property.
New build or resale: the cost of buying property in Cyprus at a glance
For most new homes bought from a developer, VAT is charged on the sale. For most resales, it is not. That single distinction changes both the VAT bill and the transfer fees, so it is the best place to start.
| Cost | New home where VAT is paid | Resale where VAT is not payable |
|---|---|---|
| VAT | 19% standard rate, or 5% reduced rate if eligible | Not payable |
| Land Registry transfer fees | None | Banded rates, reduced by 50% |
| Stamp duty | None for contracts signed from 1 January 2026 | None for contracts signed from 1 January 2026 |
| Legal fees | Agreed with your lawyer | Agreed with your lawyer |
The sections below look at each line in more detail, in roughly the order buyers come across them.
VAT on new-build property
New property sold by a developer is generally subject to VAT at the standard rate of 19%. If you are buying a home to live in as your main residence, you may qualify for the reduced 5% rate instead.
Under the rules in force since 16 June 2023, the 5% rate applies to the first 130 m² of buildable area, up to a value of €350,000, provided the total value of the transaction does not exceed €475,000 and the total buildable area does not exceed 190 m². Outside these limits, the standard rate applies.
Eligibility comes with conditions and deadlines, including transitional arrangements that were amended in 2026. We explain them in our guide to the 5% reduced VAT rate on your home in Cyprus. Whatever your situation, confirm early whether a quoted price includes or excludes VAT, as it can be a significant addition.
Land Registry transfer fees
Transfer fees are paid to the Department of Lands and Surveys when ownership is registered in the buyer’s name. They are charged in bands, with each rate applying only to the part of the value that falls within that band:
- 3% on the portion of value up to €85,000
- 5% on the portion from €85,001 to €170,000
- 8% on the portion above €170,000
Two rules make a big difference, as set out on the government’s transfer fees service page. Where the transfer relates to a transaction subject to VAT, no transfer fees are due. Where VAT is not payable, as is usually the case with a resale, the fees are reduced by 50%.
An illustrative example
For illustration only, take a resale valued at €300,000 and bought by one person. The fee would be €2,550 on the first €85,000, €4,250 on the next €85,000 and €10,400 on the remaining €130,000, a total of €17,200. After the 50% reduction, the transfer fee would be €8,600.
Joint purchases can be calculated differently, so ask your lawyer to confirm the figure for your own transaction. The Department of Lands and Surveys portal is the official place to check current fees; note that its online calculator does not apply the 50% reduction.
“Before you commit, find out whether VAT is payable on the property. That one answer tells you most of what you need to know about VAT, transfer fees and your overall budget.”
John Theodorou Group
Stamp duty: abolished for contracts from 2026
Until the end of 2025, property sale contracts attracted stamp duty at 0.15% on the value from €5,001 to €170,000 and 0.20% above that, capped at €20,000. Law 239(I)/2025 repealed the stamp duty laws from 1 January 2026, so documents signed from that date, including property sale contracts, are no longer subject to stamp duty.
According to the Tax Department, documents signed by at least one party by 31 December 2025 remain under the old law. For more on the change and what it means in practice, read what the abolition of stamp duty means for property contracts.
Legal fees and ongoing costs of owning property
An independent lawyer is one of the most valuable costs of any purchase, not an optional extra. Fees vary with the work involved and are agreed directly with the lawyer, so ask for a written quote before you instruct anyone.
That work usually includes a Land Registry search for mortgages or encumbrances, a review of the contract, depositing the contract at the Land Registry for specific performance, and checking the planning permit, the certificate of final approval and whether separate title deeds exist. Our earlier overview of property contracts in Cyprus covers these steps, although its stamp duty section no longer applies. If you are borrowing, also allow for costs set by your bank, which vary between lenders.
After you move in
Immovable property tax was abolished from 1 January 2017, so there is no annual national property tax. Municipal and sewerage fees still apply, and the amounts vary by area.
The 2026 tax reform also introduced an income tax deduction of up to €2,000 a year per eligible person for mortgage interest or rent on a main residence, subject to income thresholds that depend on your household. If you let the property, special defence contribution on rental income was abolished from 1 January 2026. When you eventually sell, capital gains tax may apply, which we cover in our guide to capital gains tax on property in Cyprus.
Frequently asked questions
Do I pay both VAT and transfer fees?
No. Where VAT was paid on the purchase, no transfer fees are due. Where VAT is not payable, transfer fees apply with a 50% reduction.
Is stamp duty still payable on property in 2026?
Not for documents signed from 1 January 2026, including property sale contracts. Documents signed by at least one party by 31 December 2025 remain under the old law.
Are legal fees fixed in Cyprus?
No. They depend on the work involved and are agreed with your lawyer, so ask for a written quote at the start.
If you are considering a new home in Limassol, our team is happy to walk you through the purchase process and the costs to plan for. You can explore our current projects or get in touch with us to arrange a conversation.
This article is for general information only and reflects our understanding of the rules as of September 2026. It is not legal, tax or financial advice. Rules change, so please confirm the details with an independent lawyer or tax adviser before making decisions.
