Real estate purchase / sale taxes

Taxes when buying property in Cyprus:
When buying a primary property from a builder or developer, the following taxes are paid:
VAT

The VAT rate on the purchase of primary real estate is 19%. But it is possible to apply a preferential VAT of 5% if this is the first property purchased by a buyer in Cyprus and will be used for their own residence. At the same time, the first 200 m2 of acquired real estate falls under preferential VAT, the remaining square meters of housing are paid at the usual rate of 19%.

Title transfer tax is not paid in this case.

When buying a secondary property, the following taxes are paid:
Stamp duty

For contracts between 5,000 and 170,000 euros, the stamp duty is 1.50 euros for every 1,000 euros. For Contracts over EUR 170,000, the stamp duty is EUR 2.00 for every EUR 1,000. For example, a contract for the purchase of real estate worth € 100,000 / € 142.5 stamp duty.

Buyer Title Transfer Tax

The total tax amount depends on the value of the acquired property. The tax is calculated as follows: Up to EUR 85,000 of the property value - 1.5% From EUR 85,001 to EUR 170,000 of the property value - 2.5% From EUR 170,001 of the property value - 4%. Example: A buyer bought a house for € 300,000. The total amount of the title will be as follows: € 85,000 x 1.5% + € 85,000 x 2.5% + € 130,000 x 4% = € 8,600

There is no annual tax on real estate in Cyprus, there is a municipal fee for garbage collection and cleaning of municipal territories, which, depending on the area and type of property, ranges from 100 to 400 euros.