The process, step by step
- Instruct your own lawyer, independent of the seller and the agent.
- Searches at the Land Registry: title, planning permission, mortgages and other charges. For contracts signed since December 2023, the seller must also attach a recent Land Registry search certificate, but it does not replace your own checks.
- Agree the tax position: whether the purchase carries VAT or transfer fees.
- Sign the contract of sale.
- Deposit the contract at the Land Registry under the Specific Performance Law (81(I)/2011). This protects you against the property being sold again or charged after you have signed.
- Complete: pay the balance and transfer the title, or wait for separate title deeds on a new build.
Title deeds on new builds
On a new development, separate title deeds can take several years after handover, and there is no fixed statutory timescale. Your deposited contract protects your right to the property in the meantime. Since 2025, buyers who have paid in full but whose transfer is blocked by the developer's lender also have a faster route to court.
What it costs in 2026
Whether you pay VAT or transfer fees depends on the property. A new home bought from a developer generally carries VAT. A resale home generally carries transfer fees instead. You do not pay both.
| Cost | 2026 |
|---|---|
| VAT on a new home | 19% standard rate |
| Reduced VAT on your main home | 5%, within limits (below) |
| Transfer fees (no VAT paid) | 3% / 5% / 8% bands, halved |
| Transfer fees (VAT paid) | None |
| Stamp duty | Abolished from 1 January 2026 |
| Legal fees | Typically around 1% plus VAT |
| Mortgage registration | 1% of the loan secured |
The reduced 5% VAT rate
Individuals buying their main residence can pay 5% VAT on the first 130 m², provided the home is no larger than 190 m², and on a value of up to €350,000, provided the total price is no more than €475,000. The home must remain your main residence for ten years, or the VAT difference is clawed back. Older, more generous rules apply only to some projects with planning applications filed by 31 October 2023.
When is a home "new" for VAT?
From 1 September 2026, a home is a taxable new building if it is sold before its "first occupation": that is, before it has been lived in, used or let for 18 months. This replaced the previous time-based test.
Transfer fees, worked example
Transfer fees are charged on the Land Registry's assessed value: 3% up to €85,000, 5% from €85,001 to €170,000 and 8% above that. On a resale home assessed at €300,000, the full fee would be €17,200; with the 50% reduction for purchases not subject to VAT, you pay €8,600.
| Assessed value €300,000 | Fee |
|---|---|
| First €85,000 at 3% | €2,550 |
| Next €85,000 at 5% | €4,250 |
| Remaining €130,000 at 8% | €10,400 |
| Total before reduction | €17,200 |
| Total payable after 50% reduction | €8,600 |
Annual costs of ownership
Cyprus abolished immovable property tax in 2017. Owners still pay local authority charges, such as municipal and sewerage fees, which vary by area. Budget for insurance, maintenance, communal fees on shared developments and, if you let the property, management.
Buyers from outside the EU
Since Brexit, this includes British buyers. Non-EU buyers need permission from the Council of Ministers, applied for through the District Administration. You can sign and deposit the contract first, but the title cannot be registered in your name until permission is granted. Current policy generally allows up to two residential units, or one home with a plot of up to about 4,000 m²; sources differ on the detail.
A company is treated as non-EU if non-EU persons hold half or more of its shares, votes or directors, or otherwise control it.
When you sell
Capital gains tax on Cyprus property is 20% of the gain. From 2026, individuals have lifetime exemptions of €150,000 on the sale of a main residence (subject to conditions) or €30,000 otherwise, within an overall €150,000 cap.
Questions
Is there stamp duty on property in Cyprus in 2026?
No. Stamp duty was abolished for documents signed from 1 January 2026.
Do I pay VAT and transfer fees?
Not both. A new home bought from a developer generally carries VAT and no transfer fees; a resale home generally carries transfer fees, reduced by 50%, and no VAT.
Can British buyers still buy property in Cyprus?
Yes. Since Brexit, British buyers need permission from the Council of Ministers, like other non-EU buyers. The contract can be signed and deposited first.
How long do title deeds take on a new build?
There is no fixed timescale, and it can take several years. Depositing your contract at the Land Registry protects your right to the property in the meantime.
Sources
- Kourtellos & Co: Buying and selling property in Cyprus in 2026 (Oct 2026)
- A. Danos & Associates via Mondaq: Real estate transactions in Cyprus, FAQs (Sep 2026)
- Koufettas Law: Buying property in Cyprus, a guide for foreigners (Oct 2026)
- Michael Kyprianou via Mondaq: Cyprus real estate legal process, costs and VAT (May 2026)
- PwC Worldwide Tax Summaries: Cyprus, other taxes (reviewed Aug 2026)
- KPMG Cyprus: Indirect tax update (Mar 2026)
- Mondaq: Cyprus 5% VAT on primary residences, 2026 amendment explained
- EY: Cyprus enacts major tax reform legislation (Jan 2026)
- Cyprus Property News: third-country nationals face two-plot limit (Mar 2026)
- C. Markou & Co: 2026 tax reform, key changes for property owners (Feb 2026)
