Cyprus Property CostWhat changed on 1 January 2026
Most Cyprus property guides online were written before 2026 and are now wrong in at least one material respect. This page lists what actually changed and what it means for a purchase today.
Old rule against new rule
| Area | Before 2026 | From 1 January 2026 |
|---|---|---|
| Stamp duty on contracts | Progressive bands to a €20,000 cap | Abolished entirely for documents executed on or after the cut-off |
| Special Defence Contribution on rental income | Charged on rents received | Removed |
| Capital gains lifetime exemptions | Long-standing lower thresholds | Raised |
| Transitional VAT regime | Reduced rate on the first 200 m² with no value cap | Narrowed to planning-delay cases and expiring 2026-12-31 |
What it means in practice
A buyer signing today pays no stamp duty. A buyer who signed in late 2025 still does, because the charge attaches to the execution of the document rather than to completion. If you are looking at a contract that was drafted last year, check the date on it.
The transitional VAT regime expires on 2026-12-31. Its remaining scope is contested and we do not compute it. If anyone tells you a property qualifies under the old 200 m² rule, ask them to put the basis in writing and take it to your advocate.
What did not change
VAT rates and caps are unchanged: 19% standard, 5% reduced, with the 190 m² and €475,000 hard caps still in force. Transfer fees and the 50% statutory reduction are unchanged. Cap.109 permission for non-EU buyers is unchanged, though the framework is under review.
This is an estimate for general information. It is not legal, tax or financial advice. Confirm every figure with a qualified Cypriot advocate and the Tax Department before signing anything.