Real estate taxes in Cyprus have undergone some changes in recent years. Here's an overview of the current property taxes and fees for buyers and owners in Cyprus:

Value Added Tax (VAT)

• Standard rate: 19% on new properties

• Reduced rate: 5% for primary residences, subject to conditions:

  • Property value up to €350,000 (total transaction cost not exceeding €475,000)

  • Total covered area not exceeding 190 m²

  • Only for individuals over 18 who haven't previously purchased property in Cyprus under reduced VAT

Transfer Fees

Payable when registering property in the buyer's name:

• 3% on the first €85,430

• 5% on €85,430 to €170,860

• 8% above €170,860

Note: 50% reduction applies if VAT was not paid on the property

Stamp Duty

• No duty up to €5,000

• €1.50 per €1,000 from €5,000 to €170,000

• €2 per €1,000 over €170,000 (maximum €20,000)

Local Authority Taxes

• Range from €90 to €300 annually, depending on property size

• Cover sewage, refuse collection, street lighting, etc.

Communal Expenses

Applicable for properties in unified complexes, costs vary widely

New Property Tax (as of 2022)

• 0.4% levy on the sales price, paid by the seller

Abolished Taxes

• Immovable Property Tax: abolished since 2017

• Inheritance Tax: abolished since January 1, 2000

It's important to note that tax regulations may change, and individual circumstances can affect the applicable taxes. Consulting with a local tax professional or real estate lawyer is advisable for the most up-to-date and personalized information.