What extra costs should you expect?
While the property’s asking price might be clear, additional costs can add up to 10% of the purchase price. These include government taxes, legal fees, and service costs that are essential to completing the transaction legally and safely.
1. Legal fees
Hiring a lawyer is not required but strongly advised. Expect to pay about 1%–2% of the property’s value. A good lawyer helps with due diligence, contract reviews, and ensures you’re protected legally throughout the sale.
2. Stamp duty
Stamp duty in Cyprus is calculated based on the property value: 0.15% on the first €170,000 and 0.20% on any amount above that. This is paid to the Tax Department during the contract registration stage.
3. Land Registry fees (Transfer fees)
These are payable when the title deed is transferred to your name. Rates vary from 3% to 8% depending on the property value, but exemptions or reductions may apply for first-time buyers or new properties subject to VAT.
4. VAT
New properties are usually subject to 19% VAT. However, a reduced 5% VAT rate applies to the first 200m² of a primary residence if certain conditions are met. Resale properties are exempt from VAT.
5. Mortgage and bank fees
If you're taking out a mortgage, expect to pay arrangement fees, valuation fees (€200–€500), and sometimes early repayment fees. These vary by bank, so shop around and ask for a full cost breakdown.
6. Insurance
Most lenders will require building insurance, and some also require life insurance. Premiums vary depending on the property and your circumstances.
7. Utility connections and municipal taxes
You’ll need to connect or transfer electricity, water, and sometimes internet or waste services. There may also be annual property or municipal taxes based on size and location of the home.
Final tip
Always budget for a buffer — around 5%–10% of the purchase price — to cover unexpected costs or changes during the buying process.