Costs · Republic of Cyprus
What buying a new-build home in Cyprus actually costs in 2026
VAT 19% or 5%·no transfer fees·no stamp duty
On a new build from a developer in the Republic of Cyprus you pay the price plus VAT — 19% as standard, or 5% on the first 130 m² and €350,000if the home is your main residence — your own lawyer’s fee, and a €10,000 reservation deposit that counts towards the price. There are no transfer fees where VAT is charged, and stamp duty was abolished on 1 January 2026. Payments after the reservation are staged and follow construction.
Prices and availability as of 11 September 2026
One-off costs on a new build
| Item | How much | Notes |
|---|---|---|
| Reservation deposit | €10,000 | Credited against the price; fixes the price in euros; non-refundable except force majeure |
| VAT | 19%, or 5% on part of the price | 5% on the first 130 m² and €350,000 of a main residence; nothing reduced above 190 m² or €475,000. Paid to the developer with each staged payment |
| Transfer fees | €0 | Not payable on a new build sold with VAT |
| Stamp duty | €0 | Abolished on 1 January 2026 |
| Your lawyer | agreed with your lawyer | Independent; we send them the contract, land documents and permit before you reserve |
| Lodging the contract | done before staged payments | The contract of sale is registered at the Land Registry; your lawyer handles it |
Two of those rows are the reason a new build costs less to buy than the headline suggests. Transfer fees — the Land Registry’s charge on resale purchases — are not payable on a home sold with VAT. And stamp duty, which used to apply to the contract of sale, no longer exists from 2026. What you budget for is the price, the VAT and your lawyer.
One older rule is still alive until 31 December 2026: on developments whose planning application was lodged before 31 October 2023, the reduced rate can apply to the first 200 m² with no cap on price. Whether a particular home falls under it is a question for the contract, and we tell you before you reserve. The full set of rates and reliefs is in the Cyprus tax 2026 article.
VAT
live calculation5% instead of 19% — but only up to €475,000
Catalogue prices exclude VAT. How much you actually pay comes down to two numbers: the price and the covered area. Move the sliders — the calculation shows what is taxed at the reduced rate, what at the standard one, the total including VAT, and what the relief saves.
Every tax and fee on buying and owning — what buying a new build actually costs and the Cyprus tax 2026 article.
Start from a real home
Who you pay, and when
- VAT
- To the developer, with each staged payment and in the same proportion. There is no separate lump sum at the end; the developer remits the tax to the Tax Department.
- The reduced rate
- On application by the buyer to the Cyprus Tax Department — it is not applied automatically. Filed before completion, together with the property documents.
- Transfer fees
- Not payable on a new build sold with VAT — that duty belongs to title transfers on the resale market.
- Stamp duty and your lawyer
- Separate from VAT and not included here. We send the full cost table before any reservation.
A reference calculation covering VAT only. Eligibility is confirmed by the Cyprus Tax Department.
VAT on this home
Reduced rate applies
Reduced VAT is a Cyprus relief for a main residence: 5% instead of 19% on the first 130 m² and the first €350,000. A home over 190 m² or €475,000 loses it entirely — the whole price is then taxed at 19%.
Within 130 m² and €350,000 — 5% on the whole price
| VAT on this home | Taxable | VAT |
|---|---|---|
| At 5%whole price | €220,000 | €11,000 |
Saves €30,800 against 19% on the whole price · effective rate 5%Without the relief it would be €261,800
Calculated from the catalogue price and covered area. The relief is granted once per buyer, for a new home they live in themselves for at least 10 years. Eligibility is confirmed by the Cyprus Tax Department, not by this site — we check how it applies to you before any reservation.
When you pay: the staged schedule
Nothing beyond the reservation is due until the contract of sale has been lodged with the Land Registry. After that the payments follow the build. The schedule below is the standard one on the partner developments we list; on our own Michelle Park the confirmed terms are €10,000 on reservation, 50% on signing the lodged contract, then 20%, 20% and 10% tied to build stages.
Valid while the first stage of a block is not yet complete. On a building that is further along, the completed stages fold into the first payment, and the exact figures for that stage are on the development page. How the whole sequence protects you — on the off-plan page.
What owning costs per year
- No annual state property tax. Immovable property tax was abolished on 1 January 2017 and has not come back.
- Municipal charges — refuse collection, street lighting, sewerage — usually a few hundred euros a year per apartment, set by the local authority.
- Communal fees where the building has shared grounds, a pool or security. Published per development — see below.
- Utilities by meter; new builds in this catalogue come with underfloor heating or VRF, which is what keeps a January bill sane.
- The ten-year rule if you took the reduced VAT rate: live in the home yourself for ten years, or repay part of the relief on sale or letting.
Communal fees published on our development pages
- Cypress Park — 1 bedroom: €2,500; 2 bedrooms: €3,000; 3 bedrooms: €3,900
When you sell
Capital gains tax is 20% on the gain, with a lifetime exemption of €30,000 — €150,000 if the home was your main residence — plus a 0.4% levy on the sale proceeds. Before the building is completed the contract can be assigned, so there is a way out of an off-plan purchase that does not wait for the keys. What stands in for the title deed until completion is explained in the title deeds article.
Questions buyers ask about costs
How much is VAT on a new-build property in Cyprus?
19% as standard. If the home becomes your main residence, the first 130 m² of covered area and the first €350,000 of the price are taxed at 5%, the rest at 19%. The relief switches off entirely above 190 m² or €475,000. Sell or let the home within ten years and part of the relief is repaid.
Are there transfer fees on a new build in Cyprus?
Not where VAT is charged on the sale — and on a new build from a developer it is. Transfer fees are a resale cost; on a new build the equivalent is the VAT, and nothing is paid to the Land Registry on top when you take the title.
Is there stamp duty in Cyprus?
No longer. Stamp duty was abolished on 1 January 2026 as part of the tax reform, for property contracts included. Contracts signed before that date fell under the old rules.
How much is the reservation deposit and is it refundable?
€10,000. It takes the home off the market, fixes the price in euros and is credited against the price. It is non-refundable except in a genuine force-majeure case — which is why we send your lawyer every document before you reserve, not after.
What does owning a new build in Cyprus cost per year?
There is no annual state property tax — it was abolished on 1 January 2017. You pay municipal charges (refuse, street lighting, sewerage), usually a few hundred euros a year per apartment, the building's communal fees where there are shared grounds, and utilities by meter. Communal fees for each development are published on its page.
Enquiry
Ask for the turnkey figure on a specific home
There is no sales department between you and an answer: we’re in Paphos, next to the properties, and we reply ourselves — during working hours, Cyprus time. If you need an answer, floor plans or the full turnkey cost table, write on whichever messenger suits you.
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