Cyprus property taxes in 2026: what you pay to buy, own, rent and sell

What changed on 1 January 2026?

Sources: CyLaw law texts (Gazette 31 Dec 2025, checked 7 Oct 2026); Registrar of Companies (19 Jan 2026). Old figures: international tax summary (reviewed 4 Aug 2026); a Cyprus accounting firm (checked 7 Oct 2026).

What do I pay when I buy?

Stamp duty. None for documents signed from 1 January 2026 (Registrar of Companies, 19 Jan 2026). Documents signed by at least one party by 31 December 2025 still follow the old rules (Tax Department announcement, reported 8 Jan 2026).

Transfer fees are paid at the Land Registry when title passes to you (Department of Lands and Surveys, checked 7 Oct 2026). The same page says no fee is due when VAT is charged on the sale (you need written confirmation from the Tax Department's VAT service). Otherwise fees are reduced by 50%. The reduction does not apply when the seller acquired the property at a forced sale under Parts VI and VIA of the Transfer and Mortgage Law (Department of Lands and Surveys, checked 8 Oct 2026). The bands are:

• 3% on value up to €85,000
• 5% on €85,001 to €170,000
• 8% above €170,000

VAT on new builds. The standard rate is 19% (international tax summary, reviewed 4 Aug 2026). A reduced 5% rate can apply to your main residence (Law 42(I)/2023; a Cyprus law firm, 28 Apr 2026):

• 5% on the first 130 m²; the rest at 19%
• value of that part up to €350,000
• total area up to 190 m²
• total price up to €475,000

If the home stops being your main residence within 10 years, the Tax Department can reclaim the VAT benefit (a Cyprus tax advisory, 3 Jul 2025).

The old 5% scheme (first 200 m²). It covers homes whose planning permit was applied for or issued by 31 October 2023 (a Cyprus law firm, 28 Apr 2026). Law 109(I)/2026 (Gazette 24 Apr 2026) lets the Tax Commissioner examine applications until 31 December 2026 where planning authority delays held them up (CyLaw, checked 7 Oct 2026). A Tax Department announcement of 4 May 2026 sets the deadline by building permit date (as reported by a Cyprus accounting firm, checked 7 Oct 2026):

• Building permit issued after 1 January 2025, or not yet issued: applications accepted from 16 June to 31 December 2026.
• Building permit issued by 31 December 2024: the 15 June 2026 deadline stands.

From 1 January 2027 only the current scheme applies (a Cyprus law firm, 28 Apr 2026).

Is there an annual property tax while I own?

No. Immovable property tax was abolished from 1 January 2017 (international tax summary, reviewed 4 Aug 2026).

You still pay local fees. In Limassol, sewerage fees are now collected by the District Self-Government Organisation (Limassol EOA fee page, checked 7 Oct 2026).

New income tax deductions from 2026 (Law 244(I)/2025; a Cyprus accounting firm, checked 7 Oct 2026):

• Up to €2,000 per person for mortgage interest or rent on your main residence. Family income limits apply: €100,000 with up to 2 children, €150,000 with 3 to 4, €200,000 with 5 or more, €40,000 for a single person.
• Up to €1,000 per person for energy-efficiency or renewable-energy systems in the home, or an electric vehicle. Sources differ on whether this is one limit or two; ask a tax adviser.

If you hold property through a company, corporate tax rose to 15% from 12.5% (a Cyprus law firm, 23 Jan 2026).

Renting out: long lets

Rent is taxed under normal income tax bands (Law 244(I)/2025; a Cyprus accounting firm, checked 7 Oct 2026):

• 0% up to €22,000
• 20% on €22,001 to €32,000
• 25% on €32,001 to €42,000
• 30% on €42,001 to €72,000
• 35% above €72,000

You can deduct 20% of gross rent in place of repair costs, plus capital allowances and interest on a loan for the rented property (international tax summary, reviewed 4 Aug 2026).

The General Healthcare System (GeSY) contribution of 2.65% applies to rental income, whether or not you are tax resident in Cyprus (a Cyprus accounting firm, 9 Mar 2026).

Renting out: short lets

• You must register the property with the Deputy Ministry of Tourism before renting it out. The registration number must appear in every advert (Cyprus Mail, 29 Apr 2025).
• The fee is €222. A first registration lasts 3 years, a renewal 5 years. Renew in the 3 months before expiry, or you start again (Cyprus Mail, 15 May 2024).
• Renting without registration can lead to a fine of up to €5,000 or up to 1 year in prison (Cyprus Mail, 29 Apr 2025).
• Since 20 May 2026, EU Regulation 2024/1028 lets authorities require platforms to show registration numbers and share data on stays (Cyprus Mail, 1 Sep 2026).
• The Audit Office report says the Deputy Ministry intended to propose legislation with extra registration documents and on-site inspections. The report sets out no night limits or local quotas (Cyprus Mail, 1 Sep 2026).

For tax, income from self-catering lets through online platforms may count as business income under certain conditions (international tax summary, reviewed 4 Aug 2026).

What do I pay when I sell?

Capital gains tax (CGT) is 20% on gains from Cyprus property, whether or not you live in Cyprus (international tax summary, reviewed 4 Aug 2026; a Cyprus accounting firm, 9 Mar 2026).

Lifetime exemptions from 1 January 2026 (Law 242(I)/2025):

• €30,000 for any disposal
• €50,000 for agricultural land sold by a farmer
• €150,000 for your main residence

You get only one of these exemptions, the larger one, and what you used on earlier sales counts against it (Capital Gains Tax Law, art. 5(2)(v)). The overall lifetime maximum is €150,000 (international tax summary, reviewed 4 Aug 2026). Ask a tax adviser.

Selling shares instead of the property. CGT now applies to shares in a company when 20% or more of its value comes from Cyprus property. Before 2026 the threshold was 50% (Law 242(I)/2025).

A 0.4% levy on the sale price: tax firms say the seller pays it and the Tax Department collects it at transfer (international tax summary, reviewed 4 Aug 2026; a Cyprus accounting firm, 9 Mar 2026). It is not part of capital gains tax. Ask your lawyer whether it applies to your sale.

Questions to ask

Seller or developer

• Is VAT charged on this sale, or will I pay transfer fees?
• When was the planning permit applied for or issued? When was the building permit issued?
• Was any document for this sale signed before 1 January 2026?

Lawyer

• When are transfer fees due, and on what value?
• Does the 0.4% levy on disposals apply to this sale, and who pays it?
• If I plan short lets, what does registration need for this property?

Tax adviser

• Do I qualify for the 5% VAT rate, under the current or the old scheme?
• How will my rent be taxed, and is short-let income business income in my case?
• How much of my lifetime CGT exemptions have I used, and do I meet the main-residence conditions?
• Does holding through a company change what I pay?

What this guide cannot tell you

• What you will pay. Your residence, family, earlier sales and document dates change it.
• Local fee rates for your area.
• How short-let rules will change. New national rules and EU housing proposals are planned.
• Anything about the building's condition. Tax documents and figures say nothing about damp, cracks or unauthorised works.

More on costs and taxes and related guides

• Renovation costs in Cyprus in 2026: what drives the price, permits, contractors and the grant
• Buying a home in Cyprus: 7 documents to ask for before you sign
• Separate title deed in Cyprus: what it is and what to ask
• Land Registry search certificate: how recent it must be

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