When purchasing real estate in Cyprus, several mandatory fees are regulated by local laws. These fees depend on the type and price of the property and are unavoidable. Buyers should consider these costs when analyzing their investment.
Transfer Fee The transfer fee is payable to the Land Registry Office when property ownership is transferred. The fee is calculated based on the property's market value at the time of the transaction, as follows:
| Property Value (€) | Transfer Fee (%) |
|---|---|
| Up to 85,000 | 3 |
| 85,001 to 170,000 | 5 |
| Over 170,000 | 8 |
Currently, the transfer fee applies only to resale properties. For first-hand properties purchased directly from developers, buyers are exempt from the transfer fee but must pay VAT at a rate of 19%. Since 2016, the Cyprus Parliament has reduced the transfer fee for all resale properties by 50%. Additionally, if the property is purchased jointly by two or more individuals, the transfer fee is divided proportionately, reducing the overall cost.
Stamp Duty Stamp duty is payable when registering the property sales agreement with the Land Registry. It is based on the contract value of the property, not its market value. Stamp duty must be paid within 30 days of signing the sales contract, as follows:
| Contract Value (€) | Stamp Duty (€) |
|---|---|
| Up to 5,000 | 0 |
| 5,001 to 170,000 | 1.5 per 1,000 |
| Over 170,000 | 2 per 1,000 |
VAT (Value Added Tax) VAT is applied to the purchase price of new properties sold by developers at a standard rate of 19%. However, there are situations where a reduced VAT rate applies:
- First Permanent Residence: Buyers of their first permanent residence in Cyprus may benefit from a reduced VAT rate of 5% for up to 200 square meters of covered area. An application and declaration must be submitted to the VAT office, indicating the intent to use the property as the main and permanent residence for at least 10 years.
- Social Policy Properties: Properties used for social policy purposes, such as affordable housing, nursing homes, or student accommodation, may qualify for a reduced VAT rate of 5%.
- Resale Properties: Properties more than five years old and previously used are exempt from VAT.
Our calculator can quickly determine your transaction fees (Transfer Fee, VAT, and Stamp Duty) by applying all relevant discounts based on the specifics of your deal. Enter the sale price of the property, the number of purchasers and your VAT rate to see the applicable fees.