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Cost of ownership in Cyprus

Cost of ownership in Cyprus Ownership costs in Cyprus consist of various taxes and fees, including community taxes and communal fees.

Read below to find out the types of costs you may incur when you own a propertyin Cyprus.

General taxes

You no longer need to pay a principal council tax in Cyprus, known as Immovable Property Tax (IPT), as it has been abolished. There are however municipality/ community taxes to pay. These cover local services and are based on a property’s 1980 value, meaning a budget of €250-€350 a year should cover them, depending on your property's location.

Communal fees

Properties within resorts or complexes will incur communal fees. For a two-bedroom apartment in Paphos, budget €400-€600 a year, depending on facilities - more if you have a lift and gated entry. At luxury resorts, with more facilities (like golf courses, spas and tennis courts) you can expect to pay more. Make sure you find out what the communal fees will be on your property before you buy!

Utilities

You'll also need to factor in how much your utilities will cost you each year. Generally, it's less expensive to run a property in Cyprus than the UK - but don't forget that you may have an air conditioning bill to consider! Find out more about utilities and other living costs here.

FAQs: Costs of ownership in Cyprus

Do you pay annual property tax in Cyprus?

No. The Immovable Property Tax was abolished in 2017, meaning there is no nationwide annual property ownership tax. However, homeowners still pay local municipal taxes and refuse collection fees, which usually amount to a few hundred euros per year.

What are the main ongoing costs of owning a home in Cyprus?

Owners should budget for local property taxes, utilities (electricity, water, internet), insurance, refuse collection, and community fees if buying in a managed development. Maintenance and repairs should also be factored in, especially for older properties or holiday homes left empty for long periods.

How much are utilities in Cyprus?

Electricity is one of the higher utility costs in Cyprus, particularly in summer due to air conditioning use. A typical two-bedroom home may spend €120-€200 per month on electricity and water. Internet packages start from around €30 per month.

Are there communal or management fees in Cyprus?

Yes. Apartments and properties in complexes with shared pools, lifts, or gardens usually have community fees. These vary widely depending on the facilities, typically ranging from €50 to €150 per month.

Do you need home insurance in Cyprus?

Yes. Although not legally required, home insurance is strongly recommended. Basic policies start from around €150 per year, with costs increasing for larger or higher-value properties. Mortgage lenders usually require proof of insurance.

What are the costs for maintaining a villa in Cyprus?

Villa owners should budget for pool cleaning, gardening, and general maintenance. Pool servicing costs around €80-€120 per month, while gardening services may add €50-€100 per visit depending on plot size.

Are there hidden costs of property ownership in Cyprus?

In addition to taxes and utilities, owners should consider air conditioning servicing, pest control, and the cost of managing a holiday home from abroad. If renting out the property, management and letting fees will also apply.

How should I budget for ownership costs as an overseas buyer?

It is sensible to set aside at least 1-2% of the property’s value annually to cover taxes, utilities, maintenance, and unexpected expenses. If you rely on income or pensions from abroad, remember that exchange rates can affect your running costs. Money can be transferred to Cyprus using specialist currency services - get in touch with A Place in the Sun Currency today to see how we can help.

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