2026 marked a turning point for the Cypriot real estate market thanks to a major tax reform. One of the most anticipated changes was the complete abolition of stamp duty on real estate purchase and sale agreements. This government move is aimed at stimulating investment activity and eliminating unnecessary bureaucratic barriers that have complicated the transaction process for decades. For foreign investors and local residents, this means not only direct financial benefits but also a significant acceleration of the property registration process.
Contents
- 1 What is stamp duty and why was it abolished?
- 2 Direct Savings: Calculating the Benefit for the Buyer in 2026
- 3 Taxes on new properties: VAT and Transfer Fee exemption
- 4 Taxation of the secondary market in 2026
- 5 Speeding up the transaction registration process
- 6 The final budget for buying real estate in Cyprus
What is stamp duty and why was it abolished?
Until 2026, stamp duty was a mandatory payment calculated progressively based on the contract value. Buyers were required to purchase special tax stamps and have the documents “stamped” by the Tax Department within 30 days of signing the contract. Failure to comply with this requirement resulted in fines and the inability to deposit the contract with the Land Registry. With the advent of total digitalization in 2026, the use of physical stamps on paper has been deemed obsolete. Registration is now electronic, and the need for an additional “stamp” has been completely eliminated.
Direct Savings: Calculating the Benefit for the Buyer in 2026
Although Stamp Duty rates were fractions of a percent (0.15%–0.2%), the costs became significant when purchasing expensive properties. For example, when purchasing a villa worth €1,000,000, the buyer previously had to pay approximately €1,900 in stamp duty. Now, this amount remains in the investor’s budget. The abolition of the duty is particularly beneficial for institutional investors and those acquiring property portfolios, where the total savings can reach tens of thousands of euros. This makes entering the Cyprus market more transparent and understandable for international capital.
Taxes on new properties: VAT and Transfer Fee exemption
A key aspect of the Cyprus tax system in 2026 remains the clear separation between the primary and secondary markets. When purchasing new property subject to VAT (the standard rate of 19% or the reduced rate of 5%), the buyer enjoys a key advantage: the complete absence of transfer fees. This means that when receiving the title deed for a new property, you do not need to pay a government registration fee. The combination of the abolished stamp duty and zero transfer fees makes purchasing a new home extremely cost-effective.
Taxation of the secondary market in 2026
For those who prefer resale properties, the rules have also become more lenient. Since resale properties are not subject to VAT, the buyer is required to pay a Transfer Fee upon transfer of ownership. However, the government incentive of a 50% discount on this tax will remain in effect until 2026. Thus, even in the resale market, the overall tax burden has been significantly reduced by the abolition of stamp duty and the retention of the 50% rate for title deeds. This supports strong demand for the renovation of older housing stock in the center of Limassol and Paphos.
Speeding up the transaction registration process
Beyond the financial aspect, the abolition of Stamp Duty has dramatically impacted the speed of legal work. Previously, the buyer’s lawyer spent time submitting documents to the Tax Department and waiting for payment confirmation. In 2026, the contract will be sent directly to the Land Registry via an online portal immediately after signing. This minimizes risks for the buyer, as the contract’s escrow (Specific Performance) now occurs almost instantly, protecting the property from any third-party encroachments or resale.
The final budget for buying real estate in Cyprus
When planning investments in 2026, it is worth focusing on the following structure of additional expenses.
For new buildings
C cost of the property + VAT (5% or 19%) + lawyer’s services (about 1%).
Stamp duty – 0%, Transfer fee – 0%.
For secondary housing
C price of the property + 50% of the standard Transfer Fee rate + lawyer’s services.
The absence of hidden fees and the abolition of Stamp Duty confirm Cyprus’s reputation as one of the most attractive areas for property ownership in the Mediterranean region.
