Cyprus Property Taxes

Transfer Fees
The purchaser will be liable to pay the following transfer fees for the property acquired, when this is registered in his/her name at the Land Registry Office. The fees are charged on the property’s market value at the date of purchase.

Property Value in € – %
Up to 85,000 – 3%
85,001 – 170,000 – 5%
Over 170,000 – 8%
(The rates above apply per person)

Hint: The more buyers are included in a contract of sale, the less transfer fees are being charged. For example, if 2 persons are jointly set as the buyers in a contract of sale, then each buyer is charged half of the transfer fees on the purchase price; if the joint buyers are 3, then the buyers are charged  ⅓ of transfer fees on the purchase price and so on.

Key Exemptions and Reductions

• VAT Paid Transaction: Properties where Value Added Tax (VAT) has been paid (typically new properties purchased directly from a developer) are fully exempt from transfer fees.

• Resale Properties: For resale properties not subject to VAT, a 50% reduction on the calculated transfer fees is generally applicable.

• Joint Ownership: If a property is purchased in joint names (e.g., by a couple), the total value is split, which can result in a lower overall fee due to the progressive scale.

• Free Transfers: Transfers between immediate family members have significantly reduced or abolished fees. For example, transfers from parents to children have no transfer fees. 

The year 2026 brings some notable changes to other property- related costs: 

• Stamp Duty: The stamp duty on contracts of sale is being fully abolished from January 1, 2026, removing a significant transactional cost for buyers.

• VAT on New Builds: Updated VAT rules in 2026 specify that the reduced 5% rate for a primary residence applies only to the first 130 sq m, with a maximum property value of €350,000 and total area not exceeding 190 sq m. The standard 19% rate applies to any excess.

• Local Municipal Charges: Property owners will still be responsible for annual local municipal charges (refuse collection, sewerage, etc.), which typically range from €90 to €300 per year. 

Capital Gains Tax and Real Estate

1. Increased Lifetime CGT Exemptions

As part of the Cyprus Tax Reform 2026, the lifetime exemptions available under the Capital Gains Tax (CGT) regime have been materially increased, reflecting the significant appreciation of real estate values and changing household mobility patterns over the past decade.

The revised lifetime exemptions are as follows:

• General CGT exemption: The general lifetime exemption is increased from €17,086 to €30,000, applying to qualifying disposals subject to CGT.

• Agricultural land exemption: The lifetime exemption for disposals of agricultural land is increased from €25,629 to €50,000, providing enhanced relief for landowners and supporting agricultural property transfers within families and between generations.

• Primary residence exemption: The lifetime exemption for the disposal of a primary residence is increased from €85,430 to €150,000, significantly enhancing relief for individuals disposing of their main home, subject to the existing qualifying conditions

Inheritance Tax
Inheritance Tax has been abolished with effect 1 January 2000, and is no longer imposed.