Property taxes in Cyprus: Full guide for Americans

Cyprus offers American buyers an appealing combination of Mediterranean sunshine and a high quality of life. Plus, if you own property worth at least 300,000 EUR, you can also qualify for a Golden Visa and get residency there, which is a nice perk.¹

However, property ownership also comes with responsibilities, one of them being property taxes in Cyprus. While there's no annual immovable property tax, you'll have to pay a local municipality tax. There are also taxes associated with buying, selling, and renting out your property.

Here's everything you need to know about Cyprus property taxes.

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Table of contents
What are property taxes in Cyprus? What types of property taxes are there in Cyprus? How are property taxes calculated in Cyprus? How to pay property taxes in Cyprus? Are there any property tax exemptions in Cyprus? Penalties for not complying with property tax rules in Cyprus Frequently asked questions

What are property taxes in Cyprus?

Cyprus got rid of its annual immovable property tax on January 1, 2017.²

However, you still have to pay a municipality tax plus sewerage and garbage collection fees. That said, it's the only property tax in Cyprus you'll have to pay each year, unless you decide to rent out your property and earn rental income.

In this case, the rental income tax will apply.

While yearly property taxes are low, there are quite a few taxes involved when it comes to buying and selling property in Cyprus. When you buy, you'll pay VAT, stamp duty, and property transfer fees. When you sell, you'll pay capital gains tax.

That said, even with these costs, Cyprus property taxes are still reasonable compared to many other EU countries.

What types of property taxes are there in Cyprus?

Stamp duty

Stamp duty is a tax that the government charges on property transactions. You need to pay it before signing your property contract or within 30 days after signing.²

The amount you pay depends on your property's value:

Property value	Stamp duty rate²
Up to 5,000 EUR	No stamp duty
5,001 EUR to 170,000 EUR	1.50 EUR per 1,000 EUR (or part of 1,000 EUR)
Over 170,000 EUR	2 EUR per 1,000 EUR (or part of 1,000 EUR)

However, there's a cap. The most you'll ever pay in stamp duty is 20,000 EUR.²

VAT

VAT (Value Added Tax) is a 19% tax on new properties in Cyprus.²

You only pay VAT when buying new properties directly from developers. If you buy an existing property from another owner, you don't pay VAT.

However, if you want to get Cyprus permanent residency through property investment, you must buy a new property, which means you'll pay VAT.

There's also a way to get a reduced VAT rate of 5% on the first 130 square meters of your primary home if it fits certain requirements.²

Property transfer fee

The property transfer fee is what you pay to officially transfer ownership to your name. You pay this to the Department of Lands and Surveys when you complete your purchase.

The fee depends on your property's value:

Property value	Transfer fee rate²
First 85,000 EUR	3%
85,001 EUR to 170,000 EUR	5%
Over 170,000 EUR	8%

You can get a 50% discount on these fees, plus other exemptions might apply.² Also, if you have already paid VAT on your property, you don't pay any transfer fees at all.

Municipal tax

This is the main ongoing tax you'll pay each year for owning property in Cyprus. It includes three parts:²

• Municipal tax: You pay 0.24 per thousand (0.024%) of your property's value each year
• Sewerage fee: This depends on how much water you use at your property
• Garbage collection fee: The municipality sets this fee each year, but the maximum you'll pay is 250 EUR

This is the only ongoing Cyprus property tax you'll have to pay, so the tax burden on property owners is pretty minimal.

Rental income tax

If you rent out your property, you'll pay income tax on the rental money you earn. This rental income gets added to your other income in Cyprus, and you pay tax on the total amount.

The tax rates depend on how much you earn per year:

Annual income	Tax rate³
Up to 19,500 EUR	0%
19,501 EUR to 28,000 EUR	20%
28,001 EUR to 36,000 EUR	25%
36,001 EUR to 60,000 EUR	30%
Over 60,000 EUR	35%

You might also need to pay 19% VAT on your rental income if you earn more than 15,600 EUR per year from rent, you started renting the property after November 17, 2017, and your tenant uses the property for business (like a shop or office).²

Capital gains tax

If you sell your property for more than you paid for it, you'll pay a capital gains tax in Cyprus. This tax only applies to your profit, not the full sale price.

To calculate your profit, you take your sale price and subtract²:
What the property was worth on January 1, 1980 (or what you paid for it if you bought it after 1980, adjusted for inflation) The money you spent improving the property

You pay 20% tax on whatever profit is left.²

How are property taxes calculated in Cyprus?

It depends on the type of tax.

For your ongoing municipality tax, you'll pay 0.24 per thousand (0.024%) based on your property's assessed value. Your local municipality sets the garbage collection fee annually, with a cap of 250 EUR. The sewerage fee depends on your water consumption.²

The other taxes we covered earlier, such as VAT, stamp duty, and transfer fees, all follow the percentage rates and brackets we outlined in the earlier sections.

How to pay property taxes in Cyprus?

Many property-related taxes can be estimated and paid online through the Republic of Cyprus's government website, which makes the process convenient for international property owners. However, you might need to pay your municipality tax through your local tax authorities.

During the property buying process, you can ask your lawyer or real estate agent about the best way to pay property taxes during the purchase and on an ongoing basis for the municipality tax.

💡 It can also be helpful to open a bank account in Cyprus for an easier process.

Are there any property tax exemptions in Cyprus?

Cyprus doesn't have exemptions for the annual municipality tax that all property owners must pay.

However, one notable exemption that you can qualify for is the reduced VAT rate under certain circumstances. The VAT applies when you purchase a new property.

The standard VAT rate is 19%, but you can access a reduced VAT rate of 5% on the first 130 square meters of your primary residence if:²

• Your property costs 350,000 EUR or less
• Your total transaction isn't over 475,000 EUR
• The property's total constructed area is 190 square meters or smaller

Property owners with disabilities receive more generous terms and can apply the 5% rate to the first 190 square meters instead of 130.²

To qualify for reduced VAT, you'll need to apply through the Tax Department of the Ministry of Finance.

The requirements include being over 18, having building permission granted after May 1, 2004, and applying either before you move in or within 12 months of occupancy. The property must be your first and primary residence in Cyprus.²

Penalties for not complying with property tax rules in Cyprus

You'll face fines and other penalties if you don't pay your property taxes on time.

The penalties can add up quickly, so it's important to stay on top of your obligations and payment deadlines.

Frequently asked questions

What is the annual property tax in Cyprus?

Cyprus abolished its immovable property tax in 2017, so there's no traditional annual property tax like you'd pay in many parts of the US. However, you'll still pay a municipality tax each year, which works out to 0.24 per thousand of your property's value, plus garbage collection and sewerage fees.²

Do Americans have to pay property taxes in Cyprus?

Yes, Americans who own property in Cyprus must pay the same taxes as any other property owner. This is true even if you don't live in Cyprus full-time. In addition to the yearly municipality tax, if you rent out your property, your earnings will be taxed as your personal income.

If you're a Cyprus tax resident (someone who spends more than 183 days out of the year on the island), you'll also get taxed on your worldwide income.⁴

Is it worth buying property in Cyprus?

There's no one right answer to this complex question, but Cyprus is typically a good place to invest in real estate. The country has a sunny Mediterranean climate, a high quality of life, a strong tourist industry, and property taxes are relatively low.

Plus, if you buy a property worth at least 300,000 EUR, you can qualify for a Golden Visa.¹

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Property taxes in Cyprus are generally owner-friendly, especially compared to many other countries.

However, owning property abroad means you'll often need to move money between the US and Cyprus for purchases, taxes, and maintenance costs. If you use your bank, chances are, high fees and hidden markups on currency exchange rates will cost you a lot of money.

Consider searching for an alternative way to transfer money abroad, such as a money transfer service.

Wise can help you get a better deal on currency conversion. You can convert over 40 currencies at the standard mid-market exchange rate, and we'll show you the fees upfront so you know exactly how much you're paying.

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Sources

1. Henley & Partners - Cyprus Residence by Investment
2. Developers Cyprus - Cyprus Property Taxes
3. Immigrant Invest - Cyprus Property Taxes
4. SPL - Cyprus Tax Residency

Sources checked 09/23/2025