Property Taxes

Immovable Property Tax payable to the Tax Department

Immovable Property Tax (IPT) is abolished since 2017.

Property Tax payable to Communities and Municipalities

This tax is levied by the municipality of the area where the property is located for street lighting, garbage collection, sewage system cleaning and other services.

Stamp Duty

Stamp duty is abolished from 1 January 2026.

Property Transfer Fees

The Property transfer fees are payable in the Land Registry when transferring the Title deeds to the buyer's name. These fees are calculated as follows:

3% on the purchase price up to €85.430

5% on the purchase price from €85.430 to €170.860

8% of the price over € 170.860

For example: if the price of the property is € 300,000, then for the first € 85.430 the fees will be €2.562 (3%), for the following € 85.430 - €4.271 (5%), for the remaining cost of € 129.140 - €10.331. Totally, the transfer fees will amount to €17.200.

When registering a property on two or more owners, the transfer fees are reduced, since the taxable value for each owner is proportionally less.

In 2016, the Government of Cyprus adopted innovations related to the Property Transfer Fees:

 (a) If VAT was paid on the purchase price of the property that usually happens when buying a new property, no Property Transfer Fees are payable.

(b) If VAT was not paid on the purchase price of the property that mostly related to resale properties, the Property Transfer Fees are reduced by 50%.

However if the Director of the Land Registry considers that the price stated on the contract of sale does not reflect the market value of the property at its date of purchase he may, at his discretion, charge the full Property Transfer Fees based on the Land Registry’s assessment of the market value of the property at its date of sale less the price stated on the contract of sale.

Capital Gains Tax

When you sell a property in Cyprus, even though it may be your main residence, you are liable to pay Capital Gains Tax at the rate of 20%. The capital gains tax is the tax imposed on the net profit that proceeds from the sale. Net profit means the profit of the sale after deducting the following:

• Transfer fees;
• Registered Estate Agents fees for the sale of the property;
• Any extras done on the property;
• Inflation etc.

Additionally, as of the Tax reform bills voted into law on 22 December 2025, the changes regarding the Capital Gain Tax effective from 1 January 2026 include:

• The definition of shares that directly or indirectly own immovable property has been amended to include shares which derive 20% (as opposed to 50% previously required) of their value from immovable property situated in Cyprus;
•  The tax-exempt amounts for disposal of immovable property, agricultural land and main residence have been increased;
•  Building/plots in exchange for land has been included in the exemptions from capital gains tax;
•  Penalties & fines have been significantly increased.