VAT on a new home
The standard VAT rate is 19%. A conditional 5% rate is available for qualifying main and permanent residences, subject to area, value and use requirements. Ask your tax adviser to confirm the applicable regime before signing; a property's marketing description alone does not establish relief.
Title transfer fees
A transaction subject to VAT is exempt from property transfer fees. Where VAT does not apply, the legislation provides a 50% reduction in the calculated transfer fee. Obtain a transaction-specific calculation from your adviser or the Department of Lands and Surveys.
Stamp duty from 2026
Stamp duty was abolished for documents signed on or after 1 January 2026. Older documents can still require assessment under the rules that applied when they were signed.
Ongoing ownership and rental costs
The national annual immovable property tax was abolished in 2017. Local service charges and running costs remain. Rental income can attract income tax and healthcare contributions; the defence contribution on rents was abolished from 2026.
Selling your property
Capital gains tax is generally 20% of the taxable gain on Cyprus property, rather than 20% of its selling price. Allowable costs, indexation and qualifying reliefs can affect the calculation. Ask a qualified adviser to calculate the liability and any other disposal charges.
Tax residence is a separate assessment
Buying a home does not by itself create tax residence. Cyprus has 183-day and conditional 60-day routes. The shorter route also requires a permanent home, a qualifying Cyprus business or employment connection, and compliance with the limit on days spent in another country. Domicile and non-dom treatment require their own review.
Reviewed 22 October 2026. This guide provides general information. An independent lawyer or tax adviser should confirm the rules, charges and reliefs that apply to your circumstances before you commit.