Property Purchase Costs in Cyprus: VAT, Transfer Fees and Stamp Duty
Which taxes and fees a buyer pays on a new build versus a resale, and how to budget for them before signing.
Establish whether VAT or transfer fees apply
New properties are normally sold with VAT (a reduced rate can apply to a qualifying main residence), while resales normally attract tiered transfer fees instead. Ask your advocate which regime applies to your unit.
Budget for stamp duty and legal fees
Stamp duty on the contract is calculated on the price in bands and is payable within the statutory deadline. Add legal fees, Land Registry search costs and, if financing, bank and valuation fees.
Confirm figures in writing before paying a deposit
Rates and thresholds are changed by legislation from time to time. Ask for a written cost breakdown from your advocate based on the rates in force on the contract date.
FAQ
Are transfer fees paid on a new build?
Generally not where the sale is subject to VAT; transfer fees are the usual cost for resales. Edge cases, such as a sale of land or a VAT-exempt transaction, should be checked individually.