Cyprus Property Taxes for Investors: What You Pay and When
VAT, transfer fees, stamp duty, rental income tax, capital gains and annual charges, mapped to the stage of ownership.
At purchase
New-build purchases attract VAT, with a reduced rate available on a qualifying primary residence within defined area limits. Where VAT applies, transfer fees are generally not charged; resale purchases attract transfer fees instead. Stamp duty applies to the contract.
During ownership
Rental income is taxable in Cyprus, with the treatment depending on whether you hold personally or through a company and on your tax residency. Municipal and communal charges apply annually. Immovable property tax at national level was abolished in 2017.
On exit
Capital gains tax applies to gains on Cypriot immovable property, with statutory allowances and deductible costs. Keep every invoice from purchase onwards; deductibility depends on documentation.
Common questions
- Does Cyprus have an annual property tax?
- The national immovable property tax was abolished in 2017. Owners still pay municipal charges, sewerage board fees and building communal charges.