Property Transfer Fees in Cyprus: What Every Buyer Needs to Know

2 April 2025

If you're considering buying property in Cyprus, understanding the tax implications is essential — and one of the most important costs to be aware of is Transfer Fees.

At Square One, we aim to make your property investment journey as transparent and informed as possible.

Here’s everything you need to know about property transfer fees in Cyprus in 2025, including how they’re calculated, who pays them, and how to reduce them.

What Are Transfer Fees in Cyprus?

Transfer Fees are a one-time tax imposed by the Cyprus Department of Lands and Surveys when the legal ownership of immovable property (such as a house or apartment) is transferred from one person or entity to another.

Who Pays Transfer Fees?

Buyers of resale properties (non-VAT properties)
Both individuals and legal entities
Not applicable on new builds where VAT is charged

Transfer Fee Rates (2024)

Transfer fees are calculated based on the assessed market value of the property at the time of transfer. The rates are progressive:

Property Value Bracket Rate Up to €85,000 3% €85,001 – €170,000 5% Over €170,000 8%

How to Reduce Your Transfer Fees

There are several scenarios where buyers can benefit from a 50% reduction or even a full exemption:

Situation Transfer Fee Status Buying a property subject to VAT 0% – Fully Exempt Buying a resale property (no VAT) 50% Reduction Intra-family transfer (e.g. parent to child) 0% or 0.1% Corporate reorganisation or merger 0% (conditions apply)

Example: Calculating Transfer Fees

Let’s look at a typical scenario:

Property Value: €300,000 (resale, not subject to VAT)

Calculation: First €85,000 × 3% = €2,550 Next €85,000 × 5% = €4,250
Remaining €130,000 × 8% = €10,400 Total Transfer Fees = €17,200
With 50% reduction: You pay €8,600

Why Transfer Fees Matter for Investors

While Cyprus remains one of the most tax-efficient property investment destinations in Europe, these one-time fees can impact short-term liquidity. Fortunately, the majority of Square One’s projects are new builds, meaning buyers are fully exempt from Transfer Fees because the purchase is subject to VAT. This provides a significant upfront saving.

Transfer Fees vs. VAT: What’s the Difference?

Scenario Transfer Fees VAT New residential property 0% 5% or 19% Resale property (no VAT) 3%–8% 0%

If you’re unsure whether VAT or Transfer Fees apply, our team can guide you through the tax implications based on your selected property.

Important Notes for 2025

According to the Cyprus Real Estate Market Overview 2024, transaction volume increased by 6.3% in the past year, with resale properties playing a significant role.

As this trend continues, Transfer Fees will remain an important consideration for buyers of second-hand homes.

Budgeting accurately for these fees is critical, especially when acquiring high-value assets.

How Square One Simplifies the Process

At Square One, we specialise in delivering turnkey real estate investments with transparent pricing.

Many of our developments qualify for VAT-based purchases, saving investors thousands by exempting them from Transfer Fees.

Additionally, our team provides full legal and financial guidance to ensure every step of your purchase is smooth, efficient, and tax-compliant.

Looking to Invest in Cyprus?

Whether you’re buying a new apartment or considering a high-yield resale property, Square One offers expert guidance and access to the most competitive opportunities in Limassol and beyond.

Our curated portfolio includes over 25 active developments, many of which are Transfer Fee-exempt.

Contact us today for professional investment guidance and more.

Disclaimer:This content is provided for informational and educational purposes only and does not constitute legal, tax, or financial advice. Square One makes every effort to ensure accuracy at the time of writing, but regulations may change. For personalised guidance, always consult a licensed tax advisor or legal professional in Cyprus.