Costs & taxes · 6 min read

The full cost of buying a new home in Cyprus in 2026

VAT, legal fees, mortgage costs and yearly charges: what you will actually pay on top of the price of a new apartment in Cyprus in 2026, including the abolition of stamp duty.

Limassol city centre. Photo: Sofiia Vytrishko / Unsplash

The price on the brochure is not the price you pay. When you buy a new apartment in Cyprus you also pay VAT, legal fees and, if you borrow, bank costs. On the other hand, some costs that buyers used to budget for have disappeared. Here is a clear list for 2026.

1. VAT: the biggest extra cost

New homes in Cyprus are sold with VAT. The standard rate is 19%, and that is what investors and buyers of second homes usually pay. A reduced 5% rate exists, but only for a buyer's primary and permanent residence in Cyprus, within size and value limits set by law. The rules were changed recently and the transitional arrangements are ending, so do not assume you qualify. Ask your lawyer to confirm it before you sign.

Always check whether a quoted price is "plus VAT" or "VAT included". On a €300,000 apartment, the difference is €57,000.

2. Stamp duty: abolished in 2026

Good news for 2026 buyers. Under Law 239(I)/2025, stamp duty was repealed from 1 January 2026. Property sale contracts signed from that date pay no stamp duty, and no stamping procedure is required.

3. Legal fees

Your own independent lawyer is the best money you will spend. Fees typically run at about 1–2% of the purchase price plus VAT, often in the range of €3,000–€5,000 for a standard apartment. They depend on the complexity of the deal and the services included: due diligence, contract review, depositing the contract at the Land Registry, the non-EU purchase permit, and the title transfer.

4. If you take a mortgage

• Bank arrangement fee: often around 1% of the loan amount.
• Mortgage registration: usually around 1% of the loan, to register the charge on the property.
• Valuation: a few hundred euros.
• Life and property insurance: usually required by the bank.

5. Yearly costs once you own

Cyprus has no annual immovable property tax; it was abolished in 2017. What remains are small local charges: municipal tax, refuse collection and sewerage, typically a few hundred euros a year in total. Add the building's common charges for maintenance of shared areas, lifts and pools, plus insurance.

If you rent the apartment out, tax is due on the rental income. How much depends on your tax residence and personal situation, so take advice from a tax adviser.

Costs you should not pay

• Buyer commission: with us it is zero. Our fee is paid by the developer you choose to buy from, and the price is the same as buying direct.
• Hidden extras: parking, storage or furniture packages should be listed in the contract, not added later.

Because we work with a range of developers, we can compare not only prices but what each price includes, so you compare like with like.

This article is general information, not legal or tax advice. Rates and rules can change. Always confirm the costs for your purchase with an independent Cyprus lawyer and a tax adviser.