Property Transfer Fees in Cyprus (2026 Guide)
Property transfer fees in Cyprus are widely misunderstood. While the statutory scale appears straightforward, the actual amount payable often depends on three decisive variables:
- Whether VAT is charged on the purchase price,
- Whether the property is acquired through a forced sale (e.g. bank repossession), and
- Whether the Land Registry accepts the declared price as the true market value.
These variables can change the final cost of acquisition by tens of thousands of euros. This guide explains how Cyprus transfer fees really work, with practical examples and a clear distinction between new builds, resales, and forced sales.
Table of Contents
The Statutory Transfer Fee Scale
Where transfer fees are payable, they are calculated as follows:
Value Bracket | Rate |
Up to €85,000 | 3% |
€85,001 – €170,000 | 5% |
Above €170,000 | 8% |
Example – Standard Calculation
Assume a purchase price of €320,000:
Bracket | Rate | Fee |
First €85,000 | 3% | €2,550 |
€85,001–€170,000 | 5% | €4,250 |
€170,001–€320,000 | 8% | €12,000 |
Total | €18,800 |
In an ordinary transaction, this amount is normally reduced by 50%, bringing the payable fee to €9,400.
However, that reduction is not universal.
New Builds vs. Resales vs. Forced Sales
Cyprus law treats these three categories very differently:
Transaction Type | VAT Applies? | Transfer Fees | 50% Reduction | Valuation Risk |
New Build (Developer Sale) | Yes (usually) | None on VAT price | N/A | Yes — on any gap |
Resale (Private Seller) | No | Yes | Yes (50%) | Yes |
Forced Sale (Bank / Lender) | Depends on asset | Yes | No | Yes (higher exposure) |
1) New Builds (Developer Sales)
New properties sold by VAT-registered developers are typically subject to VAT (19% or, in qualifying cases, 5%). Where VAT is lawfully charged and paid:
- No transfer fees are imposed on the VAT-inclusive price.
- You must produce the seller’s VAT invoices and proof of payment.
- The Land Registry may still assess a higher market value and charge fees only on the difference.
Example:
VAT price: €280,000
Land Registry valuation: €360,000
Difference: €80,000 → fees may be charged only on €80,000.
New builds are therefore the most predictable category—provided the VAT trail is clean and the price is commercially defensible.
2) Resales (Private Market Transactions)
Resales between private parties fall outside the VAT regime. As a result:
- Transfer fees apply in full,
- The law grants a 50% reduction, and
- Fees are calculated on market value, not merely the contract price.
Buyers retain the right to challenge the Land Registry’s valuation, but must first pay the assessed amount.
Resales remain cost-efficient compared to forced sales because the statutory discount is preserved.
VAT in Forced Sales: It Depends on What the Bank Is Selling
A common misconception is that all bank sales are VAT-free. This is incorrect. In forced sales, VAT treatment depends on the nature of the asset being sold and the capacity in which the bank is acting.
Asset Type Sold by Bank | VAT Treatment | Practical Effect |
New Property (first sale / never occupied) | 19% VAT | Section 10 may apply → no transfer fees on VAT price; fees only on any valuation gap |
Resale Property (previously occupied) | 0% VAT | Section 10 does not apply → full transfer fees on market value (no 50% reduction) |
Undeveloped Building Plot (economic purpose) | 19% VAT | Section 10 may apply, subject to proof of VAT and valuation acceptance |
This means that two buyers acquiring properties from the same bank can face radically different outcomes:
- Buyer A purchases a new, never-occupied apartment from a bank for €300,000 + 19% VAT.
With VAT invoices and proof of payment, transfer fees may be limited to any valuation gap only.
- Buyer B purchases a used, previously occupied apartment from the same bank for €300,000.
No VAT applies. The transaction is a forced sale. The 50% reduction is disapplied.
Transfer fees are charged in full on market value.
The forced-sale procedure does not determine VAT. The nature of the asset does.
The Land Registry’s Valuation
Transfer fees are not mechanically tied to the contract price. They are levied on the market value as determined by the Land Registry.
If, on the day of transfer, the Director considers that the declared price does not reflect true market value, he may:
- Substitute his own valuation, and
- Charge fees on that higher amount.
You may disagree—but you must first pay the fees assessed. You may then:
- File a written objection,
- Trigger an on-site inspection and revaluation (within three months), and
- Appeal to the Court if still dissatisfied.
Illustration:
Declared price: €320,000
Registry valuation: €520,000
Bracket | Rate | Fee |
First €85,000 | 3% | €2,550 |
€85,001–€170,000 | 5% | €4,250 |
€170,001–€520,000 | 8% | €28,000 |
Total | €34,800 |
The difference represents pure valuation risk.
VAT and Transfer Fees – How the Exemption Works
Section 10 of the Department of Lands and Surveys (Fees and Charges) Law (Cap. 219) provides that:
No transfer fee is imposed where VAT is charged on the same transaction.
This is conditional. If the Director is not satisfied that the VAT price reflects market value, he may impose fees on the difference between the VAT price and his valuation.
Example:
VAT price: €300,000
Registry valuation: €450,000
Difference: €150,000
Transfer fees may be charged on €150,000 only:
Bracket | Rate | Fee |
€0–€85,000 | 3% | €2,550 |
€85,001–€150,000 | 5% | €3,250 |
Total | €5,800 |
VAT therefore limits—but does not eliminate—valuation exposure.
Forced Sales – Two Outcomes, One Determinative Question
Assume a buyer acquires a repossessed apartment from a bank for €300,000.
The decisive question is not the label of the transaction, but whether VAT is lawfully chargeable and paid.
Scenario A – No VAT is Chargeable (Most Common in Bank Sales)
- The bank sells a used property outside the VAT regime.
- No VAT is charged.
- Section 10 does not apply.
- The statutory 50% reduction is disapplied.
- Transfer fees are charged at the full scale on market value.
If the Land Registry assesses market value at €420,000, the fees are:
Bracket | Rate | Fee |
First €85,000 | 3% | €2,550 |
€85,001–€170,000 | 5% | €4,250 |
€170,001–€420,000 | 8% | €20,000 |
Total Transfer Fees | €26,800 |
Scenario B – VAT Is Chargeable (e.g. New Property Sold by a Bank)
- VAT is lawfully charged at 19%.
- VAT invoices are issued and paid.
- Section 10 operates.
No transfer fees are charged on the €300,000 VAT price.
If the Land Registry values the property at €380,000, the “gap” is €80,000:
Bracket | Rate | Fee |
€0–€80,000 | 3% | €2,400 |
Total Transfer Fees | €2,400 |
Even though the transaction is a forced sale, the presence of genuine VAT transforms the outcome from a €26,800 exposure to a €2,400 exposure.
The distinction is evidential, not theoretical:
The VAT exemption applies only where VAT has been lawfully charged and demonstrably paid on the same transaction.
In forced sales, this cannot be assumed. It must be verified in advance by confirming:
- that the seller is acting within the VAT regime for this sale, and
- that VAT invoices and proof of payment will be available.
Absent that evidentiary chain, the Land Registry is entitled—indeed obliged—to impose full transfer fees on market value.
Commercial Takeaway
The statutory scale is only the starting point. The real cost of transfer depends on:
- Whether VAT is actually chargeable and paid,
- Whether the transaction qualifies as a forced sale, and
- Whether the Land Registry accepts the declared price as market value.
Two buyers purchasing identical apartments can face radically different costs depending on whether the seller is a developer, a private owner, or a bank.
At Connor Legal, we pre-model these scenarios before completion, review VAT documentation, and assess valuation exposure—so that clients enter transactions with certainty, not surprises, at the Land Registry counter.
For transaction-specific advice on your Cyprus property purchase, contact our team. Early legal structuring routinely translates into material financial savings and risk mitigation.
