Buying a new home from a developer in Cyprus costs the price plus VAT, plus about 1% to 1.5% for an independent lawyer and a small Land Registry fee. There is no transfer fee on a new build, no stamp duty since 1 January 2026, and no annual property tax. The one thing that changes your total most is whether the price you were quoted includes VAT.
1. VAT: 19%, or 5% on a main home
New homes sold by a developer carry VAT at the standard rate of 19%.
A reduced rate of 5% applies only when you buy the home to live in as your main, permanent residence. Under the rules in force since 2023, the 5% rate covers the first 130 m² of the home, the home can be no larger than 190 m², the value taxed at 5% is capped at €350,000, and the whole purchase must be no more than €475,000. Any area above 130 m² is taxed at 19%.
An older, more generous scheme (5% on the first 200 m²) still applies to some projects that applied for planning before 31 October 2023, but it is ending: for projects whose building permit was issued by 31 December 2024 it ended on 15 June 2026, and for the rest it ends on 31 December 2026.
A holiday home or an investment property pays 19%. The home must stay your main residence: if you stop living in it within ten years, the difference between 5% and 19% becomes payable for the remaining years. Take advice before you claim it.
2. Is the price with or without VAT?
Developers quote both ways. On a €500,000 home, VAT at 19% is €95,000, so a VAT-exclusive price of €500,000 means paying €595,000, while a VAT-inclusive €500,000 means paying €500,000. Get the answer in writing before you compare homes.
3. No transfer fees on a new build
Cyprus charges VAT or transfer fees, never both. When VAT is charged on a new home bought from a developer, there is no Land Registry transfer fee. Transfer fees apply to resale homes, where no VAT is charged.
4. No stamp duty since January 2026
The Stamp Duty Law was repealed with effect from 1 January 2026. Contracts of sale signed from that date carry no stamp duty.
5. Your lawyer
Budget about 1% to 1.5% of the price, plus VAT on the fee, for an independent lawyer. Some charge a fixed fee for a straightforward purchase. Your lawyer checks the title and planning, lodges your contract at the Land Registry and handles the permission non-EU buyers need.
6. Land Registry and other one-off costs
Registering your contract and, later, your title deed carries small administrative fees. Add utility connections and, if you are buying from abroad, the cost of moving money: a currency specialist can save a meaningful amount compared with a high-street bank on a sum this size.
7. Running costs
There is no annual national property tax in Cyprus; it was abolished in 2017. Expect local authority and sewerage charges of a few hundred euros a year, and a communal fee on resorts and apartment buildings for shared pools, gardens and security. Ask for the current communal fee before you buy.
Worked example 1: a holiday home
A two-bedroom apartment at €500,000, price quoted without VAT.
Price: €500,000
VAT at 19%: €95,000
Lawyer at about 1% plus VAT on the fee: about €5,950
Stamp duty: nil
Transfer fee: nil
Total: about €600,950 plus small registration fees.
This home does not qualify for 5% VAT: it is a holiday home, and its value is above the limits.
Worked example 2: a main home
A 120 m² home at €340,000 that you will live in as your main residence, price quoted without VAT.
Price: €340,000
VAT at 5% (under 130 m², under €350,000): €17,000
Lawyer at about 1% plus VAT on the fee: about €4,050
Total: about €361,050 plus small registration fees.
The same home bought as a holiday home would carry VAT of €64,600 instead of €17,000.
How to use this guide
Use our calculator to run the numbers on any home we list, or browse every new-build home we list in Cyprus, and ask your lawyer to confirm the VAT position before you sign. Rates and rules change; this guide reflects the position on 1 October 2026 and is not tax or legal advice.