In most cases, when purchasing newly built property in Cyprus, Value Added Tax is applied at the standard rate of 19%.
However, buyers who purchase a property as their primary residence may be eligible for a reduced VAT rate of 5%, subject to specific conditions.
The reduced 5% VAT rate may apply to part of the property’s area, subject to current government regulations:
If the property is sold or no longer used as the buyer’s primary residence within 10 years, the owner may be required to repay a proportional part of the VAT benefit previously received.
When purchasing resale property in Cyprus, VAT is generally not applied.
Instead, buyers are required to pay Transfer Fees when the title deed is transferred into their name.
Transfer Fees are government fees paid by the buyer when the property title is officially transferred at the Cyprus Land Registry.
The amount depends on the property value and may be reduced or waived in certain cases, such as when VAT has already been paid on a new property.
Cyprus has signed double taxation agreements with many countries, which are designed to prevent the same income from being taxed in two jurisdictions.
The exact tax obligations depend on the buyer’s country of tax residency.
At present, Cyprus does not impose an annual state property tax on privately owned real estate.
However, property owners are still required to pay local municipal fees and utility-related charges.
When selling property in Cyprus, Capital Gains Tax may apply.
This tax is calculated based on the profit made from the sale, and various exemptions and allowances may reduce the final amount payable.
To obtain permanent residency in Cyprus through property investment, applicants are typically required to purchase new real estate with a minimum value of €300,000 + VAT and demonstrate stable income from abroad.
Yes, Cyprus permanent residency does not require full-time residence in the country. However, applicants are generally expected to visit Cyprus periodically to maintain their residency status.
Holders of Cyprus permanent residency obtained through investment are not allowed to be employed in Cyprus.
However, they may own businesses or receive income from overseas sources.
Yes, dependent children can be included in the application. In some cases, adult children who are students and financially dependent on the main applicant may also qualify.
Yes, the parents of the main applicant or their spouse may be included in the application, provided that the applicant can demonstrate sufficient income to support them.
The processing time for permanent residency applications is typically between 2 and 6 months, although this may vary depending on the workload of the
Cyprus Civil Registry and Migration Department and the completeness of the submitted documents.
Yes, applicants must provide proof of stable and sufficient income from abroad to demonstrate that they can support themselves and their dependents without employment in Cyprus.
In the current environment, having only a Russian bank account may complicate the process of purchasing property in Cyprus, as many European banks apply additional compliance checks and restrictions.
In practice, buyers are often required to open an account with a foreign bank or use a bank account in another jurisdiction to complete the transaction.
International bank transfers from Russia may be restricted or declined depending on the bank, the currency used, and intermediary institutions.
The possibility of completing a transfer should be assessed on a case-by-case basis, as banking policies and sanctions regulations may change over time.
Yes, in some cases buyers use bank accounts in third countries to complete international payments, provided this complies with banking regulations and applicable laws.
All transfers are subject to standard source-of-funds and compliance checks.
Obtaining a mortgage in Cyprus for Russian citizens can currently be challenging due to banking restrictions and enhanced due diligence requirements.
Each application is assessed individually, depending on residency status, income sources, and transaction structure.
Yes, foreign buyers can purchase property in Cyprus through a registered company. However, this structure requires additional legal and tax planning, as well as disclosure of beneficial ownership in accordance with applicable regulations.
In addition to the property price, buyers in Cyprus should expect several additional costs, including:
On average, these expenses typically amount to 5–10% of the property value, depending on the type of property and transaction structure.
Personal presence in Cyprus is not always required. In many cases, a property purchase can be completed remotely using a power of attorney granted to a lawyer or authorized representative.
Yes, foreign buyers often purchase property in Cyprus remotely by issuing a notarized power of attorney.
A lawyer or representative can sign contracts, submit documents, and interact with government authorities on the buyer’s behalf.
Cyprus is considered one of the more stable jurisdictions in the region for foreign property investment.
Property ownership is registered and protected through the Cyprus Land Registry, which helps ensure transparency and legal protection for buyers.
As in any country, the safety of a transaction depends on proper due diligence, document verification, and the involvement of licensed professionals.
