Buying property in Cyprus is an exciting opportunity, but beyond the purchase price, there are additional costs that buyers must consider. Understanding these expenses upfront will ensure a smooth and stress-free buying experience.

1. Stamp Duty – A Mandatory Government Fee

Stamp duty is payable upon signing the sales contract. The rates are:

• 0.15% for properties priced between €5,001 – €170,000
• 0.20% for properties priced above €170,000
• Maximum stamp duty payable: €20,000

2. Property Transfer Fees

When the property is transferred to the buyer’s name, the Cyprus Land Registry Office charges a transfer fee based on the property’s market value:

• 3% for properties up to €85,000
• 5% for amounts between €85,001 – €170,000
• 8% for amounts exceeding €170,000

A 50% reduction on transfer fees is currently in effect. If VAT was paid on the property purchase, no transfer fees apply.

3. VAT on New Properties

• Standard VAT Rate: 19% for newly built properties.
• Reduced VAT Rate: 5% for first-time buyers on the first 130m², provided the total value is under €350,000.

Buyers must apply for the reduced VAT rate before completing the purchase.

4. Legal & Administrative Fees

Hiring a real estate lawyer ensures that all contracts, title searches, and due diligence are properly handled. Legal fees typically range between 1% – 2% of the property price.

Other administrative costs include:

• Notary fees
• Land Registry fees for contract registration

5. Annual Property-Related Taxes

Owning property in Cyprus comes with ongoing costs, including:

• Municipal & Sewerage Taxes – Typically €100 – €300 per year, depending on location.
• Communal Fees – For apartments and gated communities, ranging from €500 – €2,000 annually.
• Insurance & Maintenance – Essential for protecting your investment.

6. Utility Connection Fees

If purchasing a newly built home, expect one-time connection fees for:

• Electricity: €75 – €350
• Water: Up to €300
• Telephone (Landline): Around €120

These fees vary depending on the service provider and property location.

Conclusion

Understanding these hidden costs allows you to plan your real estate investment in Cyprus with confidence. Factoring in these expenses ensures there are no surprises and that you can enjoy your property with financial peace of mind.