Cyprus Property Taxes and Fees: A Complete Guide for Investors

Cyprus has a tax framework that is broadly favourable to international property investors by European standards, though the picture is more nuanced than the headline figures sometimes suggest. Understanding each category — transaction taxes at purchase, holding costs, rental income tax, capital gains treatment, and the position for new tax residents — is essential before making an investment decision.

This guide reflects the position as of June 2026. Tax law changes. Always take advice from a qualified Cyprus tax adviser and solicitor before transacting. Nothing in this guide constitutes tax advice.

For the purchase process itself, see How to Buy Property in Cyprus. For the residency investment pathway, see our Cyprus Permanent Residency Guide.

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Transaction Taxes at Purchase

Transfer Fees

Transfer fees are payable to the Department of Lands and Surveys on the transfer of a property title. They are calculated on the market value of the property as assessed by the Land Registry (not necessarily the agreed sale price) on a graduated scale:

Market Value Band	Transfer Fee Rate
Up to €85,430	3%
€85,431 to €170,860	5%
Above €170,860	8%

Important interaction with VAT: Where a property is subject to VAT (see below), transfer fees are either waived entirely or reduced by 50%, depending on the circumstances. The practical effect is that buyers of new-build properties who pay full VAT at 19% will generally not also pay transfer fees at the standard rates.

The transfer fee is paid by the buyer. Your solicitor will calculate the applicable amount based on the Land Registry's assessed value at the time of transfer.

VAT on New Properties

New residential properties supplied by a developer are subject to VAT at the standard Cyprus rate of 19%. This is a significant transaction cost and is factored into the total acquisition cost for any new-build purchase.

Reduced rate of 5%: A reduced VAT rate of 5% is available on the first 200 square metres of a new property, subject to the following conditions:

• The property must be used as the buyer's primary and permanent place of residence
• The buyer must not have previously benefited from the 5% reduced rate in Cyprus
• The property is for the buyer's personal use, not for letting

Where the property exceeds 200 square metres, the standard 19% rate applies to the excess area. The reduced rate is a personal benefit — investors purchasing property to let commercially will not qualify.

Resale properties (those being sold by a private individual or company after first occupation) are not subject to VAT. Transfer fees apply instead.

Stamp Duty

Stamp duty is payable on sale agreements executed in Cyprus. It is calculated on the contract value:

• 0.15% on the first €170,860 of the contract value
• 0.20% on the amount above €170,860
• Maximum stamp duty capped at €20,000 per contract

Stamp duty is relatively modest by comparison with the other transaction costs and is typically paid by the buyer within 30 days of signing the contract.

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Annual Holding Costs

Immovable Property Tax — Abolished

Cyprus abolished its annual Immovable Property Tax (IPT) with effect from 1 January 2017. This was a meaningful change that removed a recurring cost that had previously applied to all property owners based on the 1980 government valuations.

Municipal charges remain. Local authorities (municipalities and communities) continue to levy annual charges for services including refuse collection, street lighting, and sewerage. These vary by municipality, property size, and usage, but are generally modest — typically in the range of a few hundred euros per year for a standard residential property. Confirm the applicable charges for any specific property with your solicitor or the relevant municipality.

Common Charges (Apartments and Managed Developments)

Apartment buildings and gated developments typically collect common charges from owners to fund maintenance of shared areas, lifts, swimming pools, landscaping, and building insurance. These are set by the management committee of each development and vary widely. Before purchasing, request at minimum two years of accounts for the management company and confirm that charges are up to date.

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Rental Income Tax

Income Tax on Rental Income

Rental income received by individuals resident in Cyprus is subject to Cyprus income tax under the standard progressive rate schedule. The personal income tax rates for individuals as of 2026 are:

Taxable Income Band	Rate
Up to €19,500	0%
€19,501 to €28,000	20%
€28,001 to €36,300	25%
€36,301 to €60,000	30%
Above €60,000	35%

Rental income is added to other Cyprus-source income in calculating the total taxable amount. A 20% deduction for maintenance and repair expenses is available against residential rental income on a flat-rate basis, without the need to itemise individual costs. Actual expenses may be claimed instead if they exceed this amount, subject to documentation.

Non-residents receiving rental income from Cyprus property are subject to Cyprus income tax on that income under the same rate schedule, though applicable double tax treaties may affect the position. Take advice specific to your country of residence.

General Healthcare System (GHS/GESY) Contribution

Rental income is also subject to a contribution to the General Healthcare System (GHS, known as GESY). The rate applicable to rental income as of 2026 is 2.65% of gross rental income, with no threshold. This applies to both residents and non-residents receiving Cyprus rental income.

Special Defence Contribution — Position for Non-Doms

Individuals who are Cyprus tax residents but are not domiciled in Cyprus (non-doms) are exempt from Special Defence Contribution (SDC) on dividend and interest income. SDC does not apply to rental income (rental income is taxed under the income tax schedule rather than SDC), so this exemption is most relevant to investors who also receive dividend income from a Cyprus-registered company.

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Capital Gains Tax

CGT on Cyprus Property

Capital gains tax in Cyprus applies specifically and exclusively to gains arising from the disposal of immovable property located in Cyprus (and shares in companies holding such property). It does not apply to gains from the disposal of shares, securities, or other capital assets — making Cyprus notably attractive for certain investment structures.

The CGT rate is 20% of the net chargeable gain.

Calculating the chargeable gain: The gain is calculated as the disposal proceeds less the original acquisition cost, adjusted for inflation using the official consumer price index from the date of acquisition, plus allowable acquisition costs (legal fees, transfer fees paid at purchase, and capital improvements). The effect of inflation indexation is to reduce the nominal gain for properties held over a number of years.

Lifetime exemptions: Cyprus provides generous personal lifetime exemptions against CGT:

• Principal private residence: Up to €85,430 lifetime exemption, provided the seller has resided in the property as their principal home
• Agricultural land: Up to €25,629 lifetime exemption
• Other property: Up to €17,086 lifetime exemption

These exemptions are personal to the individual and are cumulative over a lifetime — once used, they cannot be reclaimed.

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The Non-Dom Regime for New Cyprus Tax Residents

Cyprus introduced its non-domicile tax regime to attract individuals who establish genuine tax residency on the island. Key features as of 2026:

• Duration: 17 years from the date of becoming a Cyprus tax resident (for individuals not previously domiciled in Cyprus under Cyprus domicile rules)
• Exemption: Non-doms are exempt from Special Defence Contribution on dividends and passive interest income — the SDC rates that would otherwise apply are 17% on dividends and 30% on interest
• Rental income: Not affected; rental income remains subject to standard income tax and GHS contributions regardless of non-dom status
• Qualifying: You must be a Cyprus tax resident (broadly, spending more than 183 days per year in Cyprus, or alternatively qualifying under the 60-day rule in certain circumstances) and must not have been domiciled in Cyprus for the 20 years preceding the claim

For investors who plan to relocate and manage investment income through Cyprus, the non-dom regime can substantially improve after-tax returns on dividend and interest income. Take advice from a Cyprus tax specialist on whether it applies to your circumstances.

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Summary: Total Transaction Costs at a Glance

Cost Item	New Property	Resale Property
VAT	19% (5% on first 200m² if primary home)	Not applicable
Transfer fees	Waived or 50% reduction where VAT applies	3–8% on assessed value
Stamp duty	0.15–0.20% (capped €20,000)	0.15–0.20% (capped €20,000)
Legal fees	Approx. 1–2% (negotiated)	Approx. 1–2% (negotiated)

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How Global Investments Can Help

Tax planning is an integral part of structuring a Cyprus property investment well, and the interaction between transaction taxes, rental income treatment, CGT, and the non-dom regime means that individual circumstances matter significantly. With over 32 years in wealth management and our team based in Cyprus, Global Investments can introduce you to qualified local tax advisers and solicitors, and help you view your property purchase within the context of a broader wealth strategy. Browse our Cyprus listings or contact us to discuss your objectives with our team.