Taxes in Cyprus

Transparent and Advantageous Tax System for Residents and Investors

Cyprus is one of the most tax-friendly regions in Europe.
The island’s tax system fully complies with EU standards while remaining simple, transparent, and beneficial for both individuals and corporations.
This makes Cyprus especially attractive to investors, entrepreneurs, and those planning to relocate for permanent residence.

Taxes When Buying Property in Cyprus

When purchasing real estate in Cyprus, several government fees and taxes apply:

1. Value Added Tax (VAT)

• Standard rate: 19%

• Reduced rate: 5% (applied under the following conditions):

• The property is purchased as a primary residence;

• The covered area does not exceed 200 m²;

• The buyer does not own any other property in Cyprus.

2. Transfer Fee (Registration Fee)

A one-time fee paid upon registration of ownership at the Land Registry Department.

If VAT is applied to the property, the transfer fee is exempt.
For properties not subject to VAT, the rate is reduced by 50%.

3. Stamp Duty

A one-time government tax paid upon signing the Sale and Purchase Agreement.

• up to €171,000 — 0.15%

• above €171,000 — 0.20%

Stamp Duty must be paid within 30 days after the contract is signed.

4. Municipal Taxes

Annual payments to local authorities for waste collection, street lighting, and area maintenance.
The amount varies between €150–€250 per year, depending on the property size and location.

Property Tax

The national Immovable Property Tax was abolished in 2017.
Today, property owners only pay local municipal fees, making property ownership in Cyprus even more cost-efficient.

Personal Income Tax

Income tax rates for individuals depend on the annual income level:

Foreign residents who earn income outside Cyprus may be exempt from local taxation on foreign income under the Non-Domiciled (Non-Dom) status.

Corporate Taxes

Cyprus offers one of the most favorable corporate tax regimes in the EU:

• Corporate income tax: 12.5% (one of the lowest in Europe);

• Dividend tax: 0% for non-residents;

• Capital gains tax: 20%, applicable only to property located in Cyprus;

• VAT: 19% standard rate, 9% on hotel and catering services.

Cyprus has signed Double Taxation Avoidance Agreements with more than 65 countries, making it a strategic hub for international business.

Taxes and Residency

By purchasing real estate worth €300,000 or more, an investor becomes eligible for Permanent Residency in Cyprus.
Residents enjoy a number of tax advantages, including eligibility for Non-Dom status, which provides exemption from taxes on dividends, interest, and inheritance.

Why Cyprus is Attractive for Investors

• Simple and transparent tax system;

• Low corporate and personal tax rates;

• No inheritance or gift tax;

• Investor and residency programs for property owners;

• High quality of life and a stable EU economy.

Cyprus Realty Center — Your Tax & Property Expert

Cyprus Realty Center will not only help you purchase the right property but also provide comprehensive guidance on the Cypriot tax system.

Our legal and financial experts ensure secure transactions and help you take full advantage of all available tax benefits.