Purchase costs in Cyprus

In addition to the purchase price, buyers should budget around 10% extra for taxes, legal fees, and registration costs on a second-hand property. These include transfer fees, stamp duty, and notary or legal fees. VAT on newbuilds is 19%, or 5% under certain conditions.

Yes. Transfer fees are paid to the Land Registry when the title deeds are transferred. The rate depends on the property’s value, though reductions often apply if VAT has already been paid on the purchase.

Yes, VAT applies to new-build properties. A reduced rate of 5% is charged on the first 130m² of your main residence, while additional space or secondary homes are charged at 19% - check full conditions.

Stamp duty is paid when signing the sales contract. The rate is 0.15% for property values between €5,001 and €170,000, and 0.20% on amounts above that threshold. There is a maximum stamp duty cap of €20,000.

Legal fees are usually around 1% of the purchase price, though some lawyers may charge a fixed fee. It is advisable to confirm costs in writing before proceeding.

Immovable Property Tax was abolished in 2017. However, local municipalities charge annual property and refuse collection taxes, usually a few hundred euros per year depending on the property.

Yes. Real estate agent fees are typically 3%-5% of the property’s value and are usually split between buyer and seller, although arrangements can vary.

It is recommended to set aside at least 10% of the property price to cover all fees, taxes, and related expenses. Buyers paying in foreign currency should also factor in exchange rate fluctuations and transfer fees. Money can be transferred to Cyprus via international bank transfers, online money transfer services, or specialist foreign exchange providers. Using a dedicated service can reduce fees and improve rates - get in touch with A Place in the Sun Currency today to see how we can help.