Land Registry Transfer Fees and Stamp Duty in Cyprus: Calculation, Exemptions and Discounts

1What are transfer fees in Cyprus and who pays them?

Transfer fees are a fee that the buyer pays to the Department of Lands and Surveys (DLS) when the property is registered in his name. They are paid on the date of the actual transfer, not on the date of signing the contract. According to the official fee schedule, the fee is always imposed on the transferee - that is, on whoever the property is registered to - unless the parties agreed otherwise between them in the contract.

This is the first point that surprises Israeli buyers: in a new apartment whose delivery is expected in several years, the transfer fees (if they apply at all) will be paid only when the deed is issued, and under the rules that will be in force then.

2How are transfer fees calculated?

The calculation is graduated, on the sale price or on the market value of the property, as of October 2026:

The 50% reduction applies, according to the fee schedule and the PwC tax summary (updated in August 2026), where the purchase of the property is not subject to VAT - that is, in most second-hand transactions. If the transaction is subject to VAT, there are no transfer fees at all.

3Calculation examples: what does it come to in practice?

Three examples of buying a second-hand apartment, not subject to VAT, from a private person:

This is how the EUR 300,000 example is calculated: 3% on the first EUR 85,000 (EUR 2,550), 5% on the next EUR 85,000 (EUR 4,250), and 8% on the remaining EUR 130,000 (EUR 10,400). The total is EUR 17,200, and after the reduction EUR 8,600. If the same apartment were a new apartment from a developer subject to VAT - the transfer fees would be zero, but the VAT itself is much higher.

4When are no transfer fees paid at all?

According to the DLS fee schedule and the PwC tax summary, there are several main situations in which there are no transfer fees or they are nominal:

• A purchase to which VAT applies: usually a new apartment sold for the first time by a developer. No transfer fees at all.
• A gift or sale from parents to children: exempt.
• A gift between spouses and between relatives up to the third degree: a fee of 0.1%, according to the property value at 1 January 2013 prices.
• Exchange of properties: no fee, unless the values are unequal - in which case only the person receiving the more expensive property pays, on the difference.
• Transfer to a trustee: according to the relationship between the beneficiary and the transferor, and in certain cases a fixed fee of EUR 50 per unit.

5VAT or transfer fees: which is better for an Israeli buyer?

Usually, the choice is not between taxes but between types of property. A new apartment from a developer is subject to VAT at the standard rate of 19%, and exempt from transfer fees. A second-hand apartment from a private person is not subject to VAT, and reduced transfer fees are paid on it. In a new project, VAT is almost always the heavier component.

A reduced VAT rate of 5% exists only for a buyer for whom the property will serve as a main and permanent residence in Cyprus. Under the framework set in 2023, the reduced rate applies to the first 130 sq m and up to a value of EUR 350,000, provided that the total area does not exceed 190 sq m and the whole transaction does not exceed EUR 475,000. For projects that meet certain transitional conditions, the old regime was extended to 31 December 2026. An Israeli investor who buys an apartment for investment or vacation use generally does not meet the main residence conditions, and so needs to plan on 19%.

6What happened to stamp duty in Cyprus?

Stamp duty was abolished. According to the Tax Department's announcement, Law 239(I)/2025 repealed the Stamp Duty Laws 1963 to 2025 from 1 January 2026. Documents drawn up and signed from that date are not subject to stamp duty, including sale contracts for immovable property.

However, there is an important transitional rule: documents signed by at least one of the parties by 31 December 2025 are still subject to stamp duty under the procedures that were in force on that date. The Land Registry also notes that a contract deposited at the registry, and a lawyer's power of attorney, need to be stamped only if one of the parties signed before 1 January 2026. According to reports, there is no refund of stamp duty paid before the abolition.

For illustration, under the previous rates - no tax on the first EUR 5,000, 0.15% up to EUR 170,000 and 0.2% above, capped at EUR 20,000 - a EUR 300,000 contract would have been subject to about EUR 507. The financial effect is limited, but the practical effect is important: a new contract can be deposited at the registry without waiting for stamps.

7What if the registry does not accept the price we declared?

The Director of the Land Registry may determine the market value if in his opinion the declared price does not reflect it, and calculate the transfer fees accordingly. A buyer who disagrees must still pay according to the value determined and file a written objection. An on-site valuation is then carried out, which must be done within three months of the date of the transfer, and the decision can be appealed to court. The practical conclusion: a price that looks below market without explanation may lead to a higher charge than expected.

8What other costs are there at the registry?

• Registration of a mortgage: 1% of the loan amount.
• Deposit of a sale contract: EUR 50.
• Deposit of an assignment of a contract: 0.5% of the price in the contract or in the assignment, whichever is higher, with a minimum of EUR 50 and a maximum of EUR 3,000.
• Search certificate: EUR 10 per district or authority, and EUR 20 for a search across the whole island.
• Deposit of a general power of attorney: EUR 50.

9What happens on a sale, and what should you know on the Israeli side?

On the sale of property in Cyprus, Cypriot capital gains tax applies at a rate of 20%. As of 1 January 2026, there is a lifetime exemption of EUR 150,000 for a main residential home and EUR 30,000 on another sale, with an overall cap of EUR 150,000. According to PwC, transfer fees and legal expenses are deductible under certain conditions in calculating the gain - so it is important to keep the receipts from the day of purchase. Annual immovable property tax was abolished in Cyprus as early as 2017.

An Israeli resident must report the sale and the rental income in Israel. There is no double taxation treaty between Israel and Cyprus, so the question of how tax paid in Cyprus will be recognized in Israel, and how acquisition costs such as transfer fees will be recognized, should be checked with an Israeli tax adviser already at the purchase stage and not at the sale stage.

10What to do before signing, and how we accompany you

Before signing we prepare for the client a full cost table: VAT or transfer fees, registry fees, mortgage registration and professional fees - according to the condition of the property and the purchase structure. We make sure that the contract defines who bears which costs and the risk of a change in rates until the transfer, and coordinate with the client's tax adviser in Israel so that the documents from the day of purchase will also serve future reporting.

Read next · 9 min readTitle Deeds in Cyprus: The Problem of Stuck Deeds and How to Protect the BuyerWhy thousands of Cyprus buyers still lack a Title Deed, what the 2025 law changed, and which checks and contract clauses protect you when buying from a developer.Read the guide

The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.