The Transfer Fee is a tax levied on the transfer of property ownership when buying a home in Cyprus. To become the full legal owner of a property, you must obtain a title deed, and to do so, the Transfer Fee must be paid to the Land Department of Cyprus.
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What is the Transfer Fee?
The Transfer Fee applies exclusively to secondary (resale) properties. Buyers of new builds are exempt from this fee.
Transfer Fee Rates in Cyprus
The amount of the Transfer Fee is based on the property’s value, and the calculation is as follows:
- Amounts up to €85,430 are taxed at 1.5%.
- Amounts from €85,431 to €170,860 are taxed at 2.5%.
- Amounts over €170,860 are taxed at 4%.
For example, if you purchase a property valued at €200,000, the Transfer Fee would be calculated as follows:
- (€85,430 x 1.5%) + (€114,570 x 2.5%) = €1,281.45 + €2,864.25 = €4,145.70.
Transfer Fee for Gifted Property
If the property is transferred free of charge (as a gift), the new owner must also pay a Transfer Fee, though the rate depends on the relationship between the seller and buyer:
- Parents to children: 0%
- Spouses or third-degree relatives: 0.1%
How to Reduce the Transfer Fee
You cannot reduce the Transfer Fee by undervaluing the property. The Land Department determines the final tax amount after thoroughly evaluating the property and comparing its value to similar properties in the market.
However, you can reduce the fee legally if there are multiple owners. The taxable value is divided proportionally among the owners, thereby reducing the Transfer Fee for each owner.
