Property Tax in Cyprus: What Owners Actually Pay in 2026

No. Cyprus abolished the Immovable Property Tax (IPT) in 2017. There is no recurring annual tax on the value of property you own. You will pay local municipal charges (sewerage, refuse collection, municipality levy), but these are service fees, typically EUR 200-500 per year depending on the municipality.

Typical closing costs when buying property in Cyprus include: Transfer fees (3-8% or 1.5-4% with VAT discount), legal fees (0.5-1% of purchase price), land registry fees for searches and caveat registration (a few hundred EUR). Stamp duty was abolished in January 2024, it no longer applies. No mortgage registration tax applies to standard residential mortgages.

No. Stamp duty on property transactions and contracts was abolished with effect from 1 January 2024. Before 2024, stamp duty was applied at 0.15% on the first EUR 170,860 and 0.2% on amounts above that. The abolition significantly reduced the cost of property transactions.

No. Cyprus abolished estate duty (inheritance tax) in 2000. There is no inheritance tax or estate duty on property passed between family members or anyone else. Assets pass without inheritance tax liability, making Cyprus very attractive for estate planning.

Yes. Interest on loans used to acquire a property that produces rental income is deductible from that rental income for income tax purposes. You can also deduct wear and tear allowances (typically 3% per year for residential properties) and maintenance costs directly related to the property.

If you sell shares in a company that owns Cyprus property, this may attract Cyprus CGT at 20% if the company's assets consist mainly of Cyprus immovable property. However, selling a company that holds primarily other assets (not Cyprus land/buildings) is exempt from CGT. Structuring advice from a Cyprus tax lawyer is important before any sale.

3% on value up to €85,000, 5% on €85,001-€170,000, and 8% above €170,000. If VAT was charged on the purchase, transfer fees are halved.

Yes, 20% on the net gain from the sale of Cyprus property. Lifetime exemptions of €17,086 to €85,430 apply depending on circumstances. Foreign property gains are not subject to Cyprus CGT.

19% standard VAT on new residential property from developers. 5% reduced rate for the first 200sqm of a primary residence for first-time buyers.

Yes, as ordinary income at progressive rates (0%-35%) after a 20% expense deduction. No SDC applies from 2026. GHS contributions (2.65%) apply on rental income.

EU citizens can buy property in Cyprus freely. Non-EU nationals may purchase up to one residential or commercial property as individuals (additional properties require Council of Ministers approval, though this is routinely granted). Investors who purchase €300,000+ in qualifying property qualify for permanent residency.

Since February 2021, all disposals of immovable property in Cyprus are subject to a 0.4% levy on the sale proceeds. This applies to both direct property sales and to sales of shares in "property-rich" companies, those where Cyprus immovable property represents more than 20% of asset value (threshold tightened in 2026 from the previous 50%). The levy is paid by the seller and its purpose is to fund compensation for Cypriot refugees displaced by the 1974 Turkish military occupation. It is separate from Capital Gains Tax (20% on gains) and transfer fees, and is payable on the full disposal consideration, not just the profit.