Cyprus abolished stamp duty on property transactions in January 2026. That single change removed one of the more significant costs from the Cyprus property buying process — and it came as part of a wider tax reform package that also raised income tax thresholds and introduced the 8% crypto flat rate.
Here is what changed, what costs remain, and how the numbers compare for buyers and sellers in 2026.
What Was Abolished and When
Stamp duty (known locally as charti cheliou) was charged on property contracts and certain other legal documents. The rate historically ran between 0.15% and 0.20% on the value of contracts, with a cap.
From 1 January 2026, stamp duty on property contracts is zero. The abolition is permanent and applies to:
- Residential property purchases (new builds and resale)
- Commercial property purchases
- Land transactions
There is no minimum or maximum transaction value — all property contracts are exempt.
What Costs Remain
Abolishing stamp duty did not eliminate all acquisition costs. Buyers should still budget 4–7% of the purchase price in total transaction costs:
| Cost | Rate | Notes |
|---|---|---|
| Transfer fees | 3–8% of purchase price | Sliding scale; halved if VAT was charged on the property |
| Legal fees | 1–2% | Market rate; always use a Cyprus-registered lawyer |
| Land Registry registration | EUR 50–200 | Fixed administrative fee |
| Stamp duty | 0% | Abolished January 2026 |
For new-build properties where VAT applies, transfer fees are reduced by 50% — a significant saving that partially offsets the VAT cost.
VAT on New Builds
New residential properties are subject to VAT at:
- 5% on the first EUR 350,000 of purchase price for a qualifying primary residence (applicant must not own other residential property in Cyprus)
- 19% standard rate on the full purchase price for non-qualifying purchases, investment properties, or amounts above EUR 350,000
Resale properties are generally VAT-exempt and subject to transfer fees at full rate.
Capital Gains Tax When Selling
Selling a Cyprus property triggers 20% CGT on the gain, with several exemptions:
- EUR 17,086 lifetime personal exemption for individuals
- EUR 85,430 exemption on gains from disposing of a primary residence (subject to 5-year occupation requirement)
- Zero CGT on Cyprus company shares — this is why some buyers hold property through a Cyprus company and sell the shares rather than the property directly
Foreign founders holding Cyprus property through a company often exit via share sale to benefit from the CGT exemption. The structure needs to be set up before purchase to work correctly.
Annual Property Costs After Purchase
Cyprus has no national annual property tax. The Immovable Property Tax was abolished in 2017. What remains:
- Municipal levies: EUR 100–400/year for sewerage and refuse collection (varies by municipality)
- Communal fees: if the property is in a managed development or apartment complex
- GHS (healthcare) contributions: if you are a Cyprus tax resident, these apply regardless of property ownership
No equivalent of UK council tax or Irish Local Property Tax exists.
Buying for Residency: The EUR 300,000 Route
Cyprus offers a Permanent Residence by Investment permit for buyers who invest a minimum of EUR 300,000 in a qualifying new-build property from an approved developer. The residence permit is indefinite, extends to a spouse and children under 18, and processing typically takes 2–3 months.
This is a separate track from standard EU freedom of movement. EU citizens already have the right to live in Cyprus — they register via the Yellow Slip (MEU1) process. The investment route is primarily used by non-EU nationals who want residency without meeting the digital nomad visa income requirements.
The Tax Context: Why Property Buyers Also Care About Non-Dom
Property ownership in Cyprus is often part of a broader relocation and tax planning decision. If you are buying to live in Cyprus permanently, establishing Cyprus Non-Dom status exempts your dividend income from income tax for 17 years — leaving only 2.65% GHS on dividends extracted from a Cyprus company.
Property rental income is subject to normal progressive income tax rates, not exempt under Non-Dom. This matters if you are renting out a Cyprus property while living elsewhere.
For buyers establishing Cyprus tax residency, the 60-day tax residency rule allows you to qualify as a Cyprus tax resident without spending the full 183 days per year — useful for people splitting their time between multiple countries.
Summary
The 2026 abolition of stamp duty makes Cyprus property transactions simpler and slightly cheaper. Budget 4–7% for remaining acquisition costs. For sellers, the 20% CGT applies but has meaningful exemptions. For long-term residents, the bigger tax picture — Non-Dom status, company structure, dividend extraction — matters more than any single transaction cost.
Canonical source: Cyprus Stamp Duty 2026 — cyprustaxlife.com
