Sale and Purchase of Property in Cyprus
A Complete Guide for International Buyers and Investors (2026 Edition)
Cyprus offers a transparent legal system, strong property rights, and a favourable tax environment, making it one of the most attractive destinations for property ownership in Europe. Below is a clear overview of the legal framework, taxes, and residency options for foreign buyers.
1. Legal Framework for Foreign Buyers
The acquisition of immovable property in Cyprus by non‑Cypriots is governed by the Acquisition of Immovable Property (Aliens) Law, Cap. 109, as amended.
Who Is Considered a “Foreigner”?
Under the Law, a foreigner includes:
- Any person who is not a citizen of the Republic of Cyprus
- A company controlled by foreigners
- A foreign company
- A trust created for the benefit of a foreigner
The Following Are Not Considered Foreigners
- Cypriots of foreign origin
- Foreign spouses of Cypriot citizens (if not divorced)
- EU nationals
Important 2026 Update
A Cyprus‑registered company, regardless of shareholder nationality, may purchase unlimited property without approval from the Council of Ministers.
This makes Cyprus companies a popular vehicle for international investors.
2. Stamp Duty (Updated 2026)
Stamp duty must be paid within 30 days of signing the Contract of Sale.
The contract must then be lodged at the Land Registry within 6 months to secure the buyer’s rights.
Stamp Duty Rates
- 0% on the first €5,000
- 0.15% on €5,001 – €170,000
- 0.20% on amounts above €170,000
- Maximum stamp duty per contract: €20,000
Late payment results in penalties.
3. Transfer Fees
Transfer fees are payable when VAT is not charged on the purchase.
Transfer Fee Rates
- 3% on the first €85,000
- 5% on the next €85,000
- 8% on the remaining amount
Discounts
- 50% reduction on all non‑VAT transactions
- 0% transfer fees if VAT was paid on the purchase price
Joint Purchasers
Two buyers benefit from two separate thresholds, reducing total fees.
4. Other Taxes
a) Inheritance Tax
Cyprus has no inheritance tax.
b) Capital Gains Tax (CGT) – Updated 2026
CGT is charged at 20% on the net profit from the sale of immovable property.
Allowable Deductions
- Transfer fees
- Registered estate agent commissions
- Documented improvements
- Legal fees
- Inflation indexation
2026 CGT Allowances
- €30,000 general lifetime exemption
- €150,000 primary residence exemption (5 years of residence required)
- €50,000 agricultural land exemption
c) VAT on Property (2026 Rules)
VAT applies to new properties (Town Planning Permit after 1/5/2004).
VAT Rates
- 19% standard VAT
- 5% reduced VAT for primary residence (up to 130 m²)
- Proportional VAT for 131–190 m²
- No reduced VAT above 190 m² or above €475,000 property value
Resale properties remain VAT‑exempt.
5. Cyprus Permanent Residence Permit (2026)
Cyprus offers Permanent Residency to non‑EU nationals through several routes.
Fast Track PR – Regulation 6(2)
A non‑EU national who purchases a new property of at least €300,000 + VAT may apply for Permanent Residency.
Eligible Family Members
- Spouse
- Children up to age 25
- Parents of the applicant or spouse (under conditions)
Key Features
- Permanent residency for life
- No requirement to live in Cyprus
- Must visit Cyprus once every 2 years
- No right to work (but may own a business)
6. Summary for Buyers & Investors
| Topic | 2026 Rule |
|---|---|
| Foreigners Law | Cyprus companies can buy unlimited property |
| Stamp Duty | Max €20,000; must be paid in 30 days |
| Transfer Fees | 0% if VAT paid; 50% discount otherwise |
| VAT | 5% for primary residence; 19% standard |
| CGT | 20% with updated 2026 allowances |
| Inheritance Tax | None |
| PR Eligibility | €300,000 new property (Reg. 6(2)) |
7. Why Invest in Cyprus?
- EU member state with strong legal protections
- High rental demand and attractive yields
- Favourable tax regime
- Safe, modern, and business‑friendly environment
- Strategic location between Europe, Asia, and the Middle East