CostsRepublic of Cyprus
What buying a new-build home in Cyprus actually costs in 2026
You pay the price, VAT — 19%, or 5% on part of the price if the home is your main residence — your own lawyer's fee and a €10,000 reservation that counts towards the price. No transfer fees, no stamp duty.
The price, VAT at 19% or 5%, and your lawyer. No transfer fees, no stamp duty.
- VAT19% or 5%
- Transfer fees€0
- Stamp duty€0
- Reservation€10,000
One-off costson a new build
One-off costs on a new build
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 24 October 2026how we check prices
| 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 applies until 31 December 2026, and not to every development
Where the planning application was lodged by 31 October 2023 and the building permit was issued after 1 January 2025 or has not been issued yet, the Tax Department accepts claims under the older rule until 31 December 2026: 5% on the first 200 m² with no cap on price. Where the building permit was issued by the end of 2024, the deadline to claim passed on 15 June 2026. Whether a particular home falls under it is a question for the contract, and we tell you before you reserve. Which available homes pass the 5% limits under the 2023 rule is on Paphos new builds with 5% VAT. 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 on a new home the buyer lives in themselves for at least 10 years, if they own no other home in Cyprus bought at the reduced rate. Eligibility is confirmed by the Cyprus Tax Department, not by this site — we check how it applies to you before any reservation.
When you payafter the Land Registry
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 here is the standard one on the partner developments we list; on our own Michelle Park the confirmed terms are €10,000 on reservation, 50% once the contract is lodged, 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.
Payment schedule
| Reservation | €10,000 |
| Contract lodged with the Land Registry | 30% |
| Stage 1 — foundations and frame | 30% |
| Stage 2 — masonry and render | 20% |
| Stage 3 — tiling | 10% |
| Stage 4 — windows and glazing | 5% |
| Handover of keys | 5% |
Owningper year
What owning costs per year
- 01
No annual state property tax.
Immovable property tax was abolished on 1 January 2017 and has not come back.
- 02
Municipal charges
Refuse collection, street lighting, sewerage — usually a few hundred euros a year per apartment, set by the local authority.
- 03
Communal fees
Where the building has shared grounds, a pool or security. Across this catalogue it follows the floor area: €2 per m² of internal area a month, or €60 a month for a villa. The figure for each home is in the table on its development page.
- 04
Utilities by meter
New builds in this catalogue come with underfloor heating or VRF, which is what keeps a January bill sane.
- 05
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.
Sellingtax and the way out
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.
Questionsabout costs
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.
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