Cyprus Property Taxes
One of the biggest attractions of buying in Cyprus is its efficient tax regime. Here's exactly what you pay when you buy, own and sell.
Taxes when you buy
New property being sold for the first time attracts VAT at 19% — reduced to just 5% on a qualifying primary residence. Resale property has no VAT but is subject to tiered transfer fees:
| Property value band | Transfer fee rate |
|---|---|
| Up to €85,000 | 3% |
| €85,001 – €170,000 | 5% |
| Above €170,000 | 8% |
Stamp duty is also payable on the contract, on a tiered scale up to a capped maximum.
Taxes while you own
- No national property tax — abolished in 2017.
- Municipal & local rates — typically a few hundred euros per year for services.
- Rental income is taxable, depending on your residency and domicile status.
Taxes when you sell
Capital Gains Tax is charged at 20% on the profit, after deducting the indexed purchase cost, improvement costs, selling expenses and statutory lifetime exemptions.
The non-domicile advantage
Individuals who become Cyprus tax residents but are non-domiciled can be exempt from tax on dividend and interest income for up to 17 years. Combined with no inheritance tax, this makes Cyprus especially efficient for relocating investors.
Property tax FAQ
New properties sold for the first time attract VAT (19%, reduced to 5% on a qualifying primary residence). Resale properties have no VAT but are subject to transfer fees. You never pay both.
The national immovable property tax was abolished in 2017. Owners still pay modest annual municipal and local rates for services such as refuse collection and sewerage.
Capital Gains Tax is 20% on the gain from selling Cyprus real estate, after allowances such as inflation indexation, improvement costs and statutory lifetime exemptions.
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