The True Cost of Buying and Owning Property in Cyprus (2026)

Short answer: on a new-build property in Cyprus, the main extra cost is VAT. It is 19% for most buyers, or 5% on part of the price if the home will be your main residence and it qualifies. You pay no transfer fee when VAT is charged, and no stamp duty on contracts signed since 1 January 2026. On a resale property you pay no VAT, but you pay a transfer fee of 3–8%, currently halved. Budget separately for legal fees and annual running costs.

On a €280,000 new apartment in Paphos, that means about €294,000 with the reduced VAT rate, €333,200 without it, or about €287,800 for a resale at the same price. The worked example below shows how each figure is calculated.

Costs at a glance

Worked example: a €280,000 apartment in Paphos

Take a one-bedroom, 59 m² apartment at Prospecta’s Park View Residences in Paphos city centre, priced at €280,000 + VAT. Here is what three different buyers would pay before legal fees.

Buyer A qualifies for 5% on the whole price because the apartment is under 130 m² and €350,000. The difference between Buyers A and B is €39,200, so it is worth confirming your VAT position before you sign.

Buyer C’s transfer fee works out like this for one buyer:

• 3% on the first €85,000 = €2,550
• 5% on the next €85,000 = €4,250
• 8% on the remaining €110,000 = €8,800
• Total €15,600, reduced by 50% = €7,800

Transfer fees are calculated per owner. If a couple buys the same resale property in equal shares, each half (€140,000) is charged separately. That gives €5,300 per person before the reduction and €5,300 in total after it, instead of €7,800.

Larger homes usually pay 19%. A three-bedroom villa at €550,000 + VAT is above the €475,000 limit for the reduced rate, so VAT is €104,500 and the total is €654,500, whoever buys it.

VAT: when do you pay 5% instead of 19%?

New properties sold by a developer carry VAT at 19%. A reduced 5% rate applies only when the home will be the buyer’s main and permanent residence in Cyprus, and only within these limits (rules in force since June 2023):

The reduced rate is not automatic. You apply to the Tax Department, and holiday homes and investment purchases do not qualify. Most overseas investors and holiday-home buyers therefore pay 19%. Some older projects still fall under transitional rules, so ask the developer which regime applies.

Transfer fees

Transfer fees are paid to the Department of Lands and Surveys when the title is transferred to you. The bands are 3% up to €85,000, 5% from €85,001 to €170,000 and 8% above €170,000. Two rules change what you actually pay:

• No transfer fee is charged when VAT was paid on the same purchase, which covers most new builds.
• Where the fee applies, it is currently reduced by 50%.

Stamp duty: no longer payable

Cyprus repealed its Stamp Duty Laws from 1 January 2026. Contracts signed from that date carry no stamp duty. Many older buying guides online still list it, so remove it from any budget built from them.

Legal fees and other one-off costs

Use an independent Cyprus lawyer and ask for a written quote before you start. Their work covers property searches, the contract, depositing it at the Land Registry, non-EU purchase permission and the title transfer. Also budget for:

• Mortgage costs if you borrow: valuation, arrangement fee, life and property insurance.
• Currency costs if your money is in dollars, shekels or pounds: transfer fees and exchange-rate moves.
• Fit-out: furniture, curtains, appliances and outdoor furniture, depending on what the specification includes. At Prospecta, air-conditioning provision, smart-home features and energy-saving features are included in the price.

Since May 2026, sellers can be fined up to €10,000 if they fail to attach a recent Search Certificate to the sale contract. Your lawyer should still run their own checks.

What does it cost to own property in Cyprus each year?

Cyprus has no annual immovable property tax; it was abolished in 2017. Your yearly costs are mostly running costs:

Ask the developer for the communal charge estimate in writing before you buy. Energy-efficient new builds cost less to run. Prospecta homes come with LED lighting, low-emission paint, ENERGY STAR appliances and water-saving fittings as standard.

If you plan to rent it out

Gross rent is not profit. Before comparing yields, deduct management (often a percentage of rent), cleaning and changeovers for short lets, empty weeks, maintenance, insurance, utilities if you pay them, platform fees and tax on rental income. Compare properties on expected net income, not the advertised yield.

Frequently asked questions

Is there stamp duty on property in Cyprus in 2026? No. Stamp duty was repealed from 1 January 2026, so contracts signed from that date carry none.

Do I pay transfer fees on a new-build property? No, if VAT was charged on the purchase. Transfer fees mainly apply to resale properties, and are currently reduced by 50%.

Can I get 5% VAT as a foreign buyer? Only if the property will be your main, permanent home in Cyprus and it is within the limits: 5% on the first 130 m² and €350,000, with no reduced rate above 190 m² or €475,000. Holiday homes and investment purchases pay 19%.

How much are transfer fees on a €280,000 resale? €7,800 for a single buyer after the 50% reduction, or €5,300 in total for a couple buying in equal shares.

Is there an annual property tax in Cyprus? No. Annual immovable property tax was abolished in 2017. Owners pay running costs such as communal charges, insurance and small local authority fees.

What does a €300,000 permanent-residency purchase cost in total? The residency route requires a first-sale property of at least €300,000 + VAT. At 19% VAT that is €357,000 before legal fees. No transfer fee or stamp duty applies.

The Prospecta perspective

We have built homes in Paphos since 1980, including the award-winning, sold-out Tony Blue Residences in Chloraka. The question we hear most from overseas buyers is not “how much is it?” but “how much will it cost me in total?” Our answer is always a written figure covering price, VAT, legal costs and expected running costs, before any deposit is paid.

Considering a property in Paphos? See our current developments or contact our team for a full cost breakdown on a specific home.

Sources

• Department of Lands and Surveys — Sale/Exchange: transfer fee rates, 50% reduction and VAT exemption
• Tax Department — Reduced VAT rate on the purchase or construction of a new dwelling
• Mondaq — Cyprus 5% VAT on primary residences: 2026 amendment

Disclaimer: Tax, VAT and fee information is general and reflects the rules as of October 2026. Your position depends on the property, the buyer and the transaction, and the rules may change. This article is not tax, legal or financial advice; get advice from qualified Cyprus professionals before you buy.

By Nicoletta Charalambous, Vice President, Prospecta Development · Updated October 2026