One of the Lowest Property Taxes in the EU

Annual Immovable Property Tax: abolished 2017. What owners pay today: minimal municipal taxes. Significant advantage over Germany, France, Spain.

What Owners Pay

Municipal Tax: 1-2‰ of value (apartment €200,000 = €200-400/year). Sewerage: €100-300/year. Refuse: €100-200/year. Total typical property: €500-1,500/year.

This was exactly our experience: One of the Lowest Property Taxes in the EU Annual Immovable Property Tax: abolished 2017. What owners pay today: minimal municipal taxes. Significant advantage over Germany, France, Spain. What Own...

– Retiree from Stuttgart, in Larnaca since 2022

When Buying

Transfer Fees: 3-8% (50% reduction if VAT applies). Stamp Duty: 0.15-0.20%. VAT new build: 19% (reduced 5% for first primary residence up to €350,000). No speculation tax – but 20% Capital Gains Tax on Cypriot property sales.

CMC for Property Buyers

Tax optimization: buy personally or via Ltd? When does 5% VAT apply? How to minimize Capital Gains Tax? Depreciation for rental property? These questions can save thousands.

Property Tax in Cyprus

Topics: One of the Lowest Property Taxes in the EU, What Owners Pay, When Buying

CMC Practical Tip

CMC for Property Buyers Tax optimization: buy personally or via Ltd? When does 5% VAT apply? How to minimize Capital Gains Tax? Depreciation for rental property? These questions can save thousands.

Frequently Asked Questions

Is there annual property tax?

No – abolished 2017. Only municipal taxes (€200-1,000/year), sewerage and refuse. Total: €500-1,500/year.

What is the 5% VAT rule?

First primary residence: 5% instead of 19% on new builds (up to €350,000 and 190m²). Huge saving.

Buy personally or via Ltd?

Primary residence: personally (5% VAT). Investment property: often Ltd (15% CIT vs up to 35% income tax). CMC calculates individually.

What is Capital Gains Tax?

20% on profit from Cypriot property sales. Exemptions: €85,430 for self-occupied primary residence.

How CMC Supports You

At CMC Certus Management Consultants, we are here for you – not only for tax and legal questions, but also for all practical topics of everyday life in Cyprus. Our team in Larnaca and Pafos knows the local conditions first-hand.

As your local contact, we handle: company formation and management, tax advisory and Non-Dom applications, ongoing bookkeeping and tax returns, support with authorities, and referrals to estate agents, lawyers, doctors and tradespeople.

Further Reading