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Property Tax in Cyprus

A plain guide to property tax in Cyprus: what you actually pay when you buy, own, rent out and sell, with the 2026 rates.
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When You Buy

The first property tax Cyprus asks of a buyer is either VAT on a new home bought from a developer, or transfer fees on a resale home. It is never both of them.

While You Own It

There is no yearly national property tax here. Owners pay only small local charges: the municipality, the sewerage board and rubbish collection, billed once a year.

When You Rent Out

Rent you receive is added to your other income and taxed at the normal personal rates. A contribution to the national health system applies on top, and it is charged on the gross rent.

When You Sell It

Capital gains tax is 20%, charged on the profit only. Lifetime allowances were raised in 2026, and they are large enough that many family sales finish with nothing to pay.

Cyprus Property Taxes at a Glance

Property taxes in Cyprus arrive at different moments, not all at once. Some are one-off and land on the day you buy. Some come round every year. One only appears when you sell. And several Cyprus property tax exemptions mean a tax that exists on paper may not touch your deal at all.

Tax or charge Who pays When Rate (2026)
VAT Buyer New property from a developer 19%, or 5% on a qualifying main home
Property transfer fees Buyer Resale property, at title transfer 3% / 5% / 8% bands, 50% reduction usually applies
Stamp duty — Abolished 0% from 1 January 2026
Annual immovable property tax — Abolished 0% since 2017
Municipal and local charges Owner Every year Small fixed amounts
Income tax on rent Landlord Every year Personal income tax rates
Capital gains tax Seller On sale, on profit only 20%

Taxes When You Buy Property in Cyprus

The cost of buying property in Cyprus turns on one rule: you pay VAT or you pay transfer fees, and never both. New from a developer means VAT and no transfer fees. Resale means transfer fees and no VAT. Everything else follows from that one split.

VAT on New Property

How much is VAT on property in Cyprus? There are two answers. The standard rate is 19% on a new home sold by a developer. A reduced rate of 5% applies to a main and permanent home, but it covers only part of the area and part of the value, and only where every condition below is met. Anything above those limits goes back to 19%. Resale homes carry no VAT at all, which is where transfer fees take over.

Conditions for the 5% rate

  • The buyer is a private person, not a company.
  • The home is the buyer’s main and permanent residence in Cyprus.
  • The 5% rate covers the first 130 m² of covered area, up to the first €350,000 of value.
  • Total covered area must not exceed 190 m², and total value must not exceed €475,000.
  • The rest of the area and the rest of the value are taxed at 19%.
  • If the home is sold, or stops being the main residence, within 10 years, part of the VAT saving is repaid.

VAT at a glance

Purchase type VAT rate
New home, main residence, conditions met 5% on the first part, 19% above
New home, standard case 19%
Resale property No VAT (transfer fees apply instead)

Property Transfer Fees

Property transfer fees Cyprus charges are paid to the Land Registry on the day the title deed goes into your name. Sometimes called Cyprus property transfer tax, they apply mainly to resale homes: where VAT was paid on the property, no transfer fees are due at all. Where they do apply, a 50% reduction normally halves the bill.

The bands

  • 3% on the value up to €85,000.
  • 5% on the value from 85,001 to €170,000.
  • 8% on any value above €170,000.
  • A 50% reduction normally applies where no VAT was paid on the purchase.
  • No transfer fees at all where VAT was paid on the property.
  • Where two people buy together the value is split between them, which usually lowers the total.

Stamp Duty: No Longer Paid

Stamp duty is gone. The Stamp Duty Law was repealed in full from 1 January 2026, so any purchase contract signed from that date carries none at all. Contracts signed on or before 31 December 2025 stay under the old law and still have to be stamped.

  • Buying for residency? The purchase route to a permit has rules of its own – they are set out in our Cyprus immigration guide.
  • Planning to buy in Cyprus? MySpace Real Estate will show you the full cost of the deal before you sign - contact us.

What Owners Pay Every Year

The immovable property tax Cyprus used to charge every owner was abolished in 2017 and has not come back, so there is no annual property tax in Cyprus at national level. What owners still pay is local and small: charges billed by the municipality and the sewerage board, plus the running costs of the building itself.

  • Municipal tax, billed by the local municipality for local services.
  • Sewerage fee, billed by the local sewerage board where the property is connected.
  • Rubbish and waste collection, sometimes billed separately and sometimes inside the municipal bill.
  • Communal fees in blocks and complexes. Not a tax, but a real yearly cost.
  • Building insurance, usually required by the bank where there is a mortgage.

Tax on Rental Income in Cyprus

The tax on rental income Cyprus charges is not a separate tax at all. Rent is added to your other income and taxed at the normal personal rates, so Cyprus rental income tax depends on what else you earn that year. One change is worth knowing about: the special defence contribution on rent was abolished from 1 January 2026, which left most landlords better off than they were the year before.

  • The first €22,000 of yearly income is free of tax. Above that the rates are 20%, 25%, 30% and 35%.
  • A flat 20% of gross residential rent can be deducted for repairs and upkeep, instead of listing real costs.
  • A contribution to the national health system (GESY) of 2.65% applies on the gross rent.
  • The special defence contribution on rent was abolished from 1 January 2026.
  • Non-residents are taxed on Cyprus rental income too, and a double tax treaty may change the result at home.

MySpace Real Estate manages rental property for owners who live abroad – see our property management service.

Tax When You Sell Property in Cyprus

Sellers ask about selling property in Cyprus tax rules, and there is really only one to learn: capital gains tax at 20%, charged on the profit and not on the sale price. It applies only to property standing in Cyprus. Capital gains tax in Cyprus for non-residents works exactly as it does for residents, because the tax follows the property rather than the owner.

Lifetime allowances (2026)

  • €150,000 on the sale of a main home lived in for at least five years.
  • €50,000 on the sale of farm land by a professional farmer.
  • €30,000 on any other property sale.
  • These are lifetime amounts, not per sale. For a single sale you use the higher one, not both.

What lowers the taxable profit

  • The purchase price, adjusted for inflation.
  • Documented improvement works.
  • Legal fees, agent fees and transfer fees paid when you bought.

What is exempt

  • Transfers by inheritance.
  • Gifts between close family members.
  • Property bought between 16 July 2015 and 31 December 2016.

  • Thinking of selling? MySpace Real Estate will value your property and explain your real net result - contact us.

Example: Tax on a €300,000 Home

Example figures only, for a home priced at €300,000. Your own numbers will depend on the covered area, on who is selling the home, and on the date you sign the contract.

New build from a developer Resale property
VAT €57,000 at 19%, or €15,000 at 5% on a qualifying main home None
Transfer fees None €17,200 before the reduction, €8,600 after the usual 50% cut
Stamp duty None None
Legal fees About €3,000–6,000 (1–2%) About €3,000–6,000 (1–2%)
Total extra cost €60,000–63,000 standard, or €18,000–21,000 as a main home €11,600–14,600

  • Thinking of selling? MySpace Real Estate will value your property and explain your real net result - contact us.

Cyprus Property Tax Calculator

Use the Cyprus property tax calculator below to see the one-off cost of a purchase before you commit to it.

Property type
Main and permanent residence
Number of buyers
VAT €57,000
Property transfer fees €0
Legal fees, estimated €3,000–€6,000
Yearly municipal charges Provided on request
Total one-off cost €60,000–€63,000

Estimates only, based on 2026 rates. Ask a Cyprus tax adviser to confirm the figures for your own purchase.

Get an exact quote

Why Cyprus Is Tax-Friendly for Property Owners

Three Cyprus property tax exemptions do most of the work here, and together they are why the yearly cost of owning stays so low.

  • There is more about living in Cyprus on our country page, from the cost of living to where people choose to buy.

Frequently Asked Questions About Property Tax in Cyprus

  • What is the annual property tax in Cyprus?

    There is none at national level. The annual property tax in Cyprus was abolished in 2017 and has not returned since. Owners pay local charges instead: municipal tax, a sewerage fee and rubbish collection, plus communal fees where the property sits in a block or a complex.

  • Is there still stamp duty on property in Cyprus in 2026?

    No. Stamp duty was repealed in full from 1 January 2026, so contracts signed from that date carry none. Contracts signed on or before 31 December 2025 stay under the old law and still need stamping. Many websites have not updated this yet, so check the date on anything you read.

  • Do I pay VAT or transfer fees when I buy a home in Cyprus?

    One or the other, never both. A new home bought from a developer carries VAT, and then no transfer fees are due. A resale home carries no VAT, and transfer fees apply instead on the 3%, 5% and 8% bands, and usually with a 50% reduction on the total bill.

  • How much tax do you pay when you sell a house in Cyprus?

    Capital gains tax at 20%, but only on the profit left after allowable costs. Lifetime allowances cut it further: €150,000 on a main home lived in for at least five years, or €30,000 on any other sale. Many family sales end with nothing at all to pay.

  • Do non-residents pay capital gains tax in Cyprus?

    Yes. Capital gains tax in Cyprus for non-residents works the same way as it does for residents, because the tax follows the property and not the owner. If the property stands on Cypriot soil, the 20% applies. A double tax treaty may then change how the gain is treated at home.

  • How much tax do I pay on rental income in Cyprus?

    It depends on your total income. Rent is added to everything else you earn and taxed on the personal scale, where the first €22,000 a year is free of tax. A flat 20% of gross residential rent can be deducted for upkeep, and a health contribution of 2.65% applies on the gross.

Last updated: August 2026

Reviewed by: [name and role – to be supplied by MySpace]

This page is general information, not tax advice. Rates change, and your own position depends on the deal.

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