Cyprus Property Transfer Fees, VAT and Stamp Duty: 2026 Guide

Updated November 2026

Property costs in Cyprus are frequently explained online using figures that are incomplete or out of date. Two points are particularly important in 2026: stamp duty has been abolished for new documents, and transfer fees must be considered together with VAT.

This guide gives a high-level overview. The actual cost of a transaction depends on its facts.

Stamp duty: abolished from 1 January 2026

Cyprus repealed the Stamp Duty Laws with effect from 1 January 2026.

That means documents, contracts and agreements signed on or after that date are no longer subject to Cyprus stamp duty under the repealed regime.

Older contracts can require separate analysis because the date on which they were drawn up or signed matters.

Property transfer fees

For a sale where transfer fees are charged, the Department of Lands and Surveys publishes the underlying scale as:

• 3% on the first €85,000;

• 5% on the portion from €85,001 to €170,000;

• 8% on the portion above €170,000.

The DLS also states that a 50% reduction applies in the general cases where transfer fees are imposed or collected under the relevant provisions.

This is different from older online guides that sometimes quote incorrect bands or omit the reduction.

What if VAT applies?

The DLS states that no transfer fee is charged or collected under the relevant transfer-fee provisions where VAT is charged on the same transaction involving the same immovable property, subject to the required evidence.

This is why a buyer should not simply calculate transfer fees from the purchase price without first establishing the VAT treatment.

Reduced 5% VAT for a primary residence

Cyprus has a reduced 5% VAT regime for qualifying purchases or construction of a primary residence, subject to the statutory conditions.

Eligibility and the amount to which the reduced rate applies should be checked against the current Tax Department rules. The fact that a property will be used personally does not by itself prove that the reduced rate applies.

The Tax Department provides a current application process and calculation tools for qualifying cases.

Is there an annual Cyprus immovable property tax?

The national Immovable Property Tax was abolished with effect from 1 January 2017.

Property owners can still have other local or property-related charges and liabilities, so "no national immovable property tax" should not be read as "no ongoing property costs".

Seller-side taxes and clearances

A seller may have tax and clearance obligations associated with the transfer. The Department of Lands and Surveys specifies documents required for a sale or transfer, including the relevant tax clearance certification.

Capital gains and other seller liabilities are fact-specific and should be considered separately from the buyer's transfer-fee calculation.

Why online calculators can mislead

Two buyers can agree the same headline purchase price but face different acquisition costs if one transaction involves VAT and the other is a resale where transfer fees apply.

The correct sequence is:

1. establish the nature of the property and transaction;

2. determine whether VAT applies;

3. consider eligibility for any reduced VAT treatment;

4. calculate transfer fees only where relevant;

5. identify seller-side taxes and completion clearances separately.

Get a transaction-specific cost view

Before budgeting for a Cyprus purchase or sale, obtain advice based on the specific property and parties rather than relying on a generic percentage table.

Speak to Pavlou & Pavlou about buying or selling property in Cyprus.

Official sources

• Department of Lands and Surveys – Sale/Exchange and transfer-fee rules

• Cyprus Tax Department – 5% Reduced VAT Rate

• Registrar of Companies – Repeal of Stamp Duty Laws

This guide is general information and not tax advice. Rates and eligibility should be checked for the particular transaction.