3 min🏠
Everything you need to know before buying property in Cyprus: tax structure, fees, registration process, and hidden costs to consider.
Cyprus is one of the most popular destinations for Israelis looking to invest in real estate abroad. The island offers a comfortable climate, a legal system based on English common law, and easily obtainable residency.
Taxes and Fees
Transfer Tax: Ranges from 1.5% to 5% of the property value. Properties under €85,000 — 1.5%, between €85,000-€170,000 — 2.5%, and above €170,000 — 3%.
VAT: 19% on new properties. Second-hand properties are exempt from VAT but subject to transfer tax.
Municipality Tax: 0.1%-0.2% of the property value annually.
The Buying Process
- Property search and offer — Working with a local lawyer is recommended.
- Signing the sale agreement — A lawyer is required by law.
- Deposit — Usually 10% of the property value.
- Property registration at the Cyprus Land Registry.
Hidden Costs
- Lawyer fees: 1%-2% of property value
- Agency commission: 3%-5%
- Land Registry registration: ~€500-€1,000
- Municipal fees: ~€100-€300
Important Tips
- Check building regulations and permits before purchase.
- Properties with approved Title Deeds are preferable.
- Consider opening a local bank account for ongoing payments.