In short: In 2026 the total cost of buying a home in Cyprus is the price plus either VAT (19%, or 5% for a qualifying main home) on a new build, or Land Registry transfer fees of roughly 1.5% to 4% per value band on a resale, plus legal fees that law firms typically quote at around 1% of the price plus VAT. Stamp duty was abolished for contracts signed from 1 January 2026, and there has been no annual immovable property tax since 2017. For a €300,000 resale home, expect about €12,000 in buying costs on top of the price, before any mortgage costs.
1. The purchase price
This is the agreed price in the contract. For resale homes, the Land Registry calculates transfer fees on the market value it assesses, which is usually the agreed price.
2. VAT or transfer fee, never both
New build from a developer: the first sale carries VAT at the standard 19% rate. A buyer who will live in the home as a main and permanent residence can apply to the Tax Department for the reduced 5% rate. It applies to the first 130 m² and the first €350,000, but only if the home is no larger than 190 m² and the total value is no more than €475,000. Above either limit, the whole property is taxed at 19%. You must keep living there for ten years or repay the difference.
Resale home: no VAT, but you pay the Land Registry transfer fee. The bands are 3% on the first €85,000, 5% from €85,001 to €170,000 and 8% above that. Because no VAT applies, the fee is reduced by 50%. Joint buyers are assessed on their own shares, which lowers the total.
Transitional rule: an older 5% VAT scheme, without the 190 m² and €475,000 caps, still applies to some projects whose planning applications were filed by 31 October 2023. It ends on 31 December 2026 at the latest, and from 1 January 2027 only the 2023 rules apply.
3. Stamp duty is now zero
Cyprus repealed its Stamp Duty Law with effect from 1 January 2026. Contracts signed in 2026 pay no stamp duty. Contracts signed on or before 31 December 2025 remain under the old regime, which charged 0.15% from €5,001 to €170,000 and 0.2% above that, capped at €20,000.
4. Legal fees
Always use your own independent lawyer. Zeno Legal, a Cyprus law firm, puts typical conveyancing fees at around 1% of the price, often quoted between 0.5% and 1.5% depending on complexity, plus 19% VAT on the fee (as of 2026). Ask for a fixed quote in writing before you start.
Non-EU buyers also need permission from the District Administration to register the title, which the lawyer usually handles.
5. Mortgage costs
If you borrow, budget for:
Bank arrangement and valuation fees, which vary by bank.
Registration of the mortgage at the Land Registry. PwC's Cyprus tax summary lists a mortgage registration fee of 1%. Ask your bank and lawyer exactly how it will be calculated for your loan.
Life and property insurance, which banks normally require.
Since stamp duty was repealed, loan documents signed from 2026 no longer attract stamp duty either.
6. Annual running costs
No property tax: Cyprus abolished its annual immovable property tax from 1 January 2017.
Local fees: owners pay modest municipal charges, such as refuse collection, and sewerage board charges where the area is connected. Amounts vary by municipality and property, so ask the seller for recent bills.
Communal fees: apartments and gated developments charge common expenses for cleaning, lifts, pools, gardens and building insurance. Ask for the last year of accounts, and check there are no arrears, since unpaid communal fees can cause problems at transfer.
Utilities and insurance: electricity, water, internet and home insurance, as anywhere.
If you later rent the property out, rental income is taxed. From 1 January 2026, the special defence contribution on rent was abolished. See our rental yields guide.
Worked example for a €300,000 resale apartment
One buyer, resale, no VAT, contract signed in 2026, no mortgage.
Transfer fee: 3% on €85,000 is €2,550, 5% on €85,000 is €4,250, 8% on €130,000 is €10,400, so €17,200 in total, reduced by 50% to €8,600.
Stamp duty: €0.
Legal fees: at about 1%, €3,000 plus 19% VAT, so about €3,570.
Total buying costs: about €12,170, or about 4.1% of the price. All in: about €312,170.
Worked example for a €300,000 new-build apartment
Same price, but bought new from a developer, 110 m², as the buyer's main home, so it qualifies for 5% VAT.
VAT: at 5%, €15,000.
Transfer fee: €0, because VAT applies.
Stamp duty: €0.
Legal fees: about €3,570.
Total: about €318,570. If the same home did not qualify for the reduced rate, VAT at 19% would be €57,000, for a total of about €360,570.
These examples are illustrations using the official rates. Your lawyer will confirm the exact figures.
Tips to keep costs down
Confirm the VAT status in writing before you sign.
Consider buying jointly, which can lower transfer fees on resales.
Apply for 5% VAT before you take possession of a new build.
Get a fixed legal fee quote and ask what disbursements it covers.
Request communal fee accounts and municipal bills during due diligence.
Sources
PwC Worldwide Tax Summaries, Cyprus, Individual, Other taxes: https://taxsummaries.pwc.com/cyprus/individual/other-taxes
Andersen Cyprus, Cyprus Tax Reform, comprehensive update effective from 1 January 2026: https://cy.andersen.com/news/cyprus-news-cyprus-tax-reform-comprehensive-update-effective-from-1-january-2026/
Zeno Legal, Cyprus cost of buying property and transfer fees 2026: https://www.zenolegal.com/resources/cyprus-cost-of-buying-property-transfer-fees-2026
Kyprianou and Co, Cyprus VAT on first homes reform and transitional relief to 31 December 2026: https://www.kyprianou.com/?p=20260
Department of Lands and Surveys, Republic of Cyprus: https://portal.dls.moi.gov.cy
This guide is general information, not legal or tax advice. Confirm current rules with a Cyprus lawyer or accountant before you decide.