Tax & Costs for Foreign Buyers Buying Property in Cyprus (2026)

8 February 2026

Buying property in Cyprus as a foreign buyer involves more than selecting the right location or property type. Understanding taxes, purchase costs, and ongoing obligations is essential for budgeting correctly and avoiding surprises.

This guide focuses exclusively on tax and cost considerations for foreign buyers purchasing property in Cyprus. It explains VAT, stamp duty, transfer fees, capital gains tax, and ongoing ownership costs in a clear and practical way.

It is designed as a technical companion to our foreign buyer and market guides.

Who This Guide Is For

This article is relevant for:

• Foreign nationals buying residential property in Cyprus
• Buyers budgeting for total acquisition costs
• Investors planning resale or long-term ownership
• Buyers considering relocation or future residency

It does not compare locations (Limassol vs Paphos) or investment strategy in depth — those topics are covered in our other guides.

For an overview of why foreign buyers choose Cyprus and how investment, relocation, and residency planning fit together, see our dedicated resource:

Foreign Buyer’s Guide to Property Investment in Cyprus (2026)
https://foxrealty.eu/news/article/57/foreign-buyer%E2%80%99s-guide-to-property-investment-in-cyprus-(2026)

VAT on Property Purchases in Cyprus

VAT is often the largest single cost item for foreign buyers.

VAT Rates

• 19% VAT applies to new properties by default
• 5% reduced VAT may apply to qualifying primary residences, subject to conditions

Important Notes for Foreign Buyers

• VAT eligibility depends on use, not nationality
• Reduced VAT applies only to specific size limits
• VAT treatment must be assessed before signing
• Incorrect structuring can permanently remove eligibility

VAT planning should always be addressed early.

Stamp Duty on the Sale Agreement

Stamp duty is payable on the sale agreement and calculated on the contract value, subject to statutory thresholds.

It is a one-off cost, payable shortly after signing the agreement, and must be factored into acquisition planning.

Transfer Fees

Transfer fees may apply depending on whether VAT has been paid.

Key points:

• Often reduced or exempt when VAT is paid
• Commonly applicable on resale properties
• Calculated by the Land Registry based on valuation

Your lawyer will confirm the exact amount during the transfer process.

Legal & Professional Fees

Foreign buyers should budget for:

• Independent legal fees
• Contract review and due diligence
• Land Registry and administrative charges

Professional representation is essential for protecting buyer interests and ensuring compliance.

Capital Gains Tax on Resale

When selling Cyprus-situated property, Capital Gains Tax (CGT) may apply.

Key features:

• Tax applies on the net gain, not the sale price
• Certain acquisition costs and expenses are deductible
• Indexation relief may apply for older properties
• Primary residence exemptions may apply, subject to conditions

Exit planning should be considered before purchase, not only at resale.

Ongoing Ownership Costs

Foreign property owners should also consider ongoing expenses such as:

• Municipal and community charges
• Common building and management fees
• Insurance and maintenance
• Utilities and services

Cyprus does not impose an annual property ownership tax, which is a key advantage compared with many other jurisdictions.

Rental Income & Tax Considerations

If the property is rented, owners may need to consider:

• Income tax on rental proceeds
• Allowable expense deductions
• Reporting obligations

Tax treatment depends on ownership structure and the owner’s tax residence.

Common Cost & Tax Mistakes Foreign Buyers Make

• Budgeting only for the purchase price
• Ignoring VAT eligibility until too late
• Underestimating professional fees
• Not planning resale or exit tax exposure
• Failing to coordinate legal and tax advice

Most cost overruns are the result of insufficient early planning.

How This Guide Fits Within Our Cyprus Property Resources

This tax and cost guide complements our other FoxRealty resources:

• Foreign Buyer’s Guide to Property Investment in Cyprus (2026)
  (Investment, relocation & residency planning)
  https://foxrealty.eu/news/article/57/foreign-buyer%E2%80%99s-guide-to-property-investment-in-cyprus-(2026)
• Buying Property in Cyprus – Limassol & Paphos Complete Guide
  (Market overview, locations & buying process)
  https://foxrealty.eu/news/article/56/buying-property-in-cyprus---limassol-paphos-complete-guide

Together, these three articles provide foreign buyers with a complete, structured understanding of the Cyprus property market — from strategy, to costs, to execution.

Buying property in Cyprus as a foreigner can be highly attractive, but cost clarity and tax awareness are essential.

By understanding VAT, transfer fees, capital gains, and ongoing costs in advance, buyers can:

• Budget accurately
• Avoid unnecessary expense
• Protect long-term value

Early advice is not an extra cost — it is risk control.

Need a Clear Cost Breakdown Before Buying?

Foreign buyers benefit from transparent guidance on taxes and purchase costs before committing to a property.

Contact Fox Real Estate for Buyer Guidance https://foxrealty.eu