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The True Cost of Buying Property in Cyprus: New Build vs Resale

When purchasing real estate in Cyprus, many buyers focus on the price agreed with the seller. However, the actual cost of acquisition is made up of several additional charges, which differ depending on whether the property is a first sale (new build) or a resale (used home).

Understanding these costs from the outset allows buyers to budget accurately and avoid surprises later on. At Andreas Demetriades & Co LLC, we guide our clients through every stage of the process, but below you will find a general overview of the most common expenses.

1. First Sale Property (New Build)

For a newly constructed property sold for the first time, VAT at the standard rate of 19% is imposed on the purchase price.

Buyers intending to use the property as their main and permanent residence in Cyprus (and not rent it out) may qualify for a reduced VAT rate of 5%, provided they meet the legal criteria.

Transitional Provisions – Law of 16 June 2023

A reduced 5% VAT applies on the first 200 square meters of buildable area if a responsible declaration is filed within three years from 16 June 2023, and either:
a) A planning permit was issued by 31 October 2023, or
b) An application for a planning permit was submitted by 31 October 2023.

Applications submitted from 1 November 2023 onwards

• The 5% VAT rate is available only for the first 130 square meters of buildable area, provided the property value does not exceed €350,000.
• Where the value is up to €350,000, the reduced VAT can also extend proportionally to the area between 130 and 190 square meters.
• If the property value ranges between €350,001 and €475,000, the reduced VAT applies only up to €350,000, proportionately for the square meters between 130 and 190.

Transfer Fees: When VAT is charged on the purchase price, no Land Registry transfer fees are payable. An exception arises if, at the stage of title deed transfer, the Land Registry determines that the property’s market value is higher than the contract price; in that case, fees may be levied on the difference. Buyers retain the right to object to such a valuation.

2. Resale Property (Previously Owned)

In the case of resale properties, no VAT is generally payable, subject to certain conditions. As a practical indicator, if the property has been connected to the electricity network for more than five years, this is usually accepted as conclusive evidence that VAT does not apply.

However, Land Registry transfer fees will be payable, calculated on a progressive scale:

• Up to €85,000: 1.5%
• €85,001 – €170,000: 2.5%
• Over €170,000: 4%

3. Stamp Duty

Update: As of 1 January 2026, Stamp Duty is no longer applicable in Cyprus.

4. Additional Expenses

Beyond VAT, transfer fees and stamp duty, buyers should also budget for:

• Approximately €200 for general administrative costs
• Bank charges relating to anti-money laundering compliance

Clear Legal Guidance

At Andreas Demetriades & Co LLC, we ensure that property buyers in Cyprus are fully informed of all related costs and procedures before signing any agreement.

Whether acquiring a brand new home or a resale property, our legal team provides step-by-step support to safeguard your interests and ensure a smooth transfer.

For tailored advice on your property purchase in Cyprus, contact us today.

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