Stamp duty and transfer costs
Key figure: Stamp duty on the sale contract0%
Stamp duty on a property sale contract is 0%: the tax reform in force from 1 January 2026 abolished it. The figure comes from a secondary source, PwC Worldwide Tax Summaries, and is dated beside the heading.
Removing stamp duty does not make a transfer free. The Department of Lands and Surveys charges its own fee when title passes to the buyer, and our reference does not hold that scale, so we give no figure for it here.
Items to confirm before you sign
Title: whether the flat or house already has its own title deed, or whether the developer still holds a single deed for the whole plot. A buyer in the second case depends on the developer until separate deeds are issued.
The contract at the Land Registry: whether the signed sale contract will be deposited with the Department of Lands and Surveys, which records your claim against the property until the transfer.
Permission to buy: buyers from outside the EU, UK citizens included since Brexit, need permission to acquire immovable property in Cyprus. Our reference does not track its fee or its timing.
Debts on the property: mortgages or charges registered against the land or the developer’s plot.
Note
Who checks the property itself
We are not a law firm and do not check title or draft sale contracts. Buyers usually hire an independent lawyer for that part; we do not refer or work through one.
VAT on a new-build home
Key figure: Standard VAT rate19%
A new home bought from a developer carries VAT at the standard 19%. On a home priced at the residence minimum of €300,000, that is €57,000 of VAT (19% × €300,000), so the buyer pays €357,000 in total.
Cyprus also has reduced rates of 9%, 5%, 3%, 0%. The reference describes where they apply: 9%: accommodation, restaurants, catering, some local passenger transport; 5%: foodstuffs, pharmaceuticals, qualifying first residence (first 130 sq m, value up to EUR 350,000); 3%: certain cultural goods, items for disabled persons and other listed supplies; 0%: exports and certain basic goods (bread, milk, eggs etc.). Whether a particular purchase qualifies for the reduced rate is decided under the VAT rules for that home, not by the buyer or the seller.
When this applies
For the residence permit, the €300,000 threshold is counted without VAT. VAT is paid on top and does not count towards the minimum.
Checked on cy-md-reg62
Buying property in Cyprus to get residency
Key figure: Minimum investment€300,000
A purchase of at least €300,000 plus VAT can support a fast-track permanent residence application under Regulation 6(2). The regulation sets these conditions: One of: (A) up to two new houses/apartments bought as a first sale from a development company, EUR 300,000 plus VAT (resales accepted only if the contract was filed before 7 May 2013); (B) other real estate (offices, shops, hotels), resale allowed; (C) share capital of a Cyprus company with physical presence and at least 5 employees; (D) units of Cyprus AIF/AIFLNP/RAIF. Funds must come from abroad. At least EUR 300,000 (excluding VAT) must be paid when applying.
The current criteria have applied since 2 May 2023. A resale apartment bought today does not qualify under the residential route, whatever it cost.
Passive income: the second test
Key figure: Minimum income€50,000/year
The property alone is not enough: the applicant must also show a secured income of at least €50,000/year. Secured annual income of EUR 50,000, plus EUR 15,000 for a spouse and EUR 10,000 per dependent minor child. For option (A) residential property, income must come from abroad and is proved by a tax return from the country of tax residence or a certificate from an independent certified accountant; for (B)-(D) part may come from Cyprus.
For a buyer living on pensions, dividends or rent from another country, this is the test that decides the file. Income earned in Cyprus does not count on the residential property route.
Where property-based applications fail
Key figure: Processing time2 months
The Migration Department examines a complete application in about 2 months. The conditions below come from Regulation 6(2); a file that misses any one of them fails regardless of how much the property cost.
The home was not a first sale
Resales are accepted only for contracts filed before the cut-off date the regulation names, quoted in the section on residence above. Buyers who switch to a cheaper resale apartment lose the residence route.
The money did not come from abroad
Every payment towards the €300,000 must be transferred from outside Cyprus. A balance already sitting in a Cypriot bank account does not count, and at least €300,000 excluding VAT must be paid by the time the application goes in.
The income proof does not match
On the property route, the €50,000/year has to come from abroad and be proved by a tax return from your country of tax residence or by a certificate from an independent certified accountant.
Note
The Migration Department charges an application fee of €500. Plus EUR 70 per person for an Alien Registration Certificate.
Checked on cy-md-reg62
Keeping the permit after you buy
Key figure: Permit validityNo expiry
The permit has no expiry date, but it has conditions. Right of residence is permanent; the residence card must be replaced every 10 years. Lapses if the holder does not settle within 1 year of approval, acquires permanent residence abroad, or is absent from Cyprus for 2 years. The investment must be kept.
Selling the home breaks the condition that the investment is kept, and with it the basis for the permit.
When this applies
Work in Cyprus
Holder and spouse may not work in Cyprus except as directors of the company in which they invested; they may be shareholders and unpaid directors of other Cyprus companies.
Checked on cy-md-reg62
Renting the property out
Key figure: Defence contribution on rent0%
The special defence contribution on rental income is 0% from 1 January 2026; the reform abolished it.
Rent remains income. A Cyprus tax resident declares it in the personal income tax return, where the first €22,000/year of chargeable income is tax-free from 1 January 2026. Tax residency itself follows the rules below, not the purchase: Individuals: more than 183 days in Cyprus in the calendar year, or the 60-day rule. Companies: managed and controlled in Cyprus, or (from 1 Jan 2026) incorporated or re-domiciled in Cyprus unless a tax treaty provides otherwise.
Property does not lead to a passport
Key figure: Years to citizenship8 years
Cyprus closed citizenship by investment on 1 November 2020. Buying property today gives no route to a passport by itself.
Naturalisation needs 8 years of legal residence plus Greek language and civics tests. A permanent residence permit from a property purchase does not shorten that period.
Who this is not for
This checklist covers the tax and residence side of a purchase. It will not help if you are:
- Looking for listings, agents or prices of homes in Paphos, Limassol, Larnaca or Protaras. We do not sell property.
- Buying a resale home and expecting residence from it. Since 2 May 2023 only a first sale from a developer qualifies on the residential route.
- Planning to take a job in Cyprus. The fast-track permit does not allow employment, except as a director of the company you invested in.
- Paying from a Cypriot bank account. The investment must arrive from abroad.
- Hoping the purchase leads to a Cypriot passport. Citizenship by investment closed on 1 November 2020.