When buying property abroad, one of the most important considerations for investors is taxation. In this regard, Cyprus stands out as one of the most tax-friendly countries in Europe. With no inheritance tax, competitive corporate tax rates, and affordable property ownership costs, the island has become a top choice for foreign buyers seeking both lifestyle and financial advantages.
At Ameti Residences, we help international clients navigate the legal and tax aspects of property ownership in Cyprus, ensuring that your investment is secure, transparent, and optimized for long-term value.
Key Cyprus Real Estate Taxes for Foreign Buyers
1) No Inheritance Tax
One of the most attractive tax benefits for property owners is that Cyprus has abolished inheritance tax. This makes it an ideal destination for those looking to pass on property assets to family members without additional costs.
2) Low Property Transfer Fees
When buying property, transfer fees are applied if VAT is not paid on the property. These are generally 3–8% of the property’s value, but discounts apply for joint ownership. If VAT was already paid, transfer fees may be significantly reduced.
3) Value-Added Tax (VAT) on Property
- New properties are subject to 19% VAT.
- However, a reduced VAT rate of 5% applies for first-time buyers or for homes intended as a primary residence (up to 200m²).
This reduced rate is a major advantage for those purchasing a property to live in Cyprus long-term.
4) Stamp Duty
Stamp duty must be paid when signing the purchase contract:
- Up to €170,000 → 0.15%
- Over €170,000 → 0.20%
- Maximum capped at €20,000
Ongoing Property Ownership Taxes
1) No Annual Property Tax
Unlike many European countries, Cyprus abolished annual immovable property tax in 2017. Owners only need to pay modest local municipal fees (for waste collection, sewage, etc.), typically €100–€300 annually.
2) Rental Income Tax
Foreign owners who rent out their property will be taxed on their rental income:
- Up to €19,500 → 0%
- €19,501–€28,000 → 20%
- €28,001–€36,300 → 25%
- Over €36,300 → 30%
Deductions are available for maintenance expenses, making rental investments more profitable.
3) Capital Gains Tax (CGT)
If you sell your Cyprus property, CGT is charged at 20% on gains. However, there are exemptions — for example, the first €85,430 from the sale of your primary residence is exempt, provided you lived there for at least 5 years.
Why Cyprus is a Tax-Friendly Choice for Foreign Buyers
- No inheritance tax — secure wealth transfer to family.
- No annual property tax — unlike most EU countries.
- Low corporate tax (12.5%) — beneficial for those holding property via a company.
- Reduced VAT on new homes — only 5% in certain cases.
- Double tax treaties with over 60 countries — protecting foreign investors from being taxed twice.
How Ameti Residences Supports You
Navigating Cyprus property tax and real estate taxes as a foreign buyer can feel complex. That’s why at Ameti Residences, we offer:
- In-house legal experts to ensure tax compliance and ownership security
- Tailored advice for structuring your investment in the most tax-efficient way
- Exclusive property deals in Cyprus that meet both lifestyle and investment needs
- Residency support for investors seeking Permanent Residency by property purchase
📩 Contact us today at info@ametiresidences.com to learn more about property ownership and tax benefits in Cyprus.
For foreign buyers, Cyprus offers one of the most attractive real estate tax regimes in Europe. With no inheritance tax, no annual property tax, reduced VAT options, and favorable treaties, investing in Cyprus real estate is not only a lifestyle decision but also a financially strategic one.
With Ameti Residences guiding your purchase, you can enjoy the full tax benefits of owning property in Cyprus with complete peace of mind.